The United States has sent more than $12 billion back to Venezuela from the sale of its oil and other natural resources, according to a State Department report released Nov. 12. The figures offer a detailed public accounting of how that money has been spent.
The U.S. Treasury began collecting the oil revenue after the capture of Venezuelan leader Nicolás Maduro in January. That revenue had previously flowed to Maduro’s government.
How much oil revenue has been returned?
The report, prepared by accounting firm KPMG for the State Department, found the Treasury has paid out $12.11 billion, about 98.7% of the total, through approved payment channels to Venezuela.
The money came from sales of Venezuelan oil, gold, minerals such as coal and fertilizer. Oil is Venezuela’s main export and the backbone of its economy.
The report said a key goal is to make sure the money flows into the Venezuelan economy in a transparent and controlled way that benefits the Venezuelan people. KPMG, one of the world’s largest accounting firms, reviewed the payments as part of a financial oversight program.
Where did the oil revenue go?
Based on a sample of payments, nearly $3.4 billion went to food and consumer goods in the first nine months, the report said. Food was the largest category in the sample.
More than $2.2 billion went to business and administrative services, nearly $1.2 billion to agriculture and about $532 million to health care and pharmaceuticals. Together, those four categories account for roughly $7.3 billion.
Because the figures come from a sample, they offer a snapshot rather than a complete accounting of every payment. The report did not break down the remaining payments in the portion released.
The large share for food comes after years of shortages that left many Venezuelans struggling to afford basic goods.
What happened to Nicolás Maduro?
Maduro and his wife were captured by the United States and remain detained in New York. They face charges related to drug trafficking, narcoterrorism, weapons and torture. They have not been convicted, and the cases are pending in federal court.
The report offers a rare look inside Venezuela’s government finances since his removal. It also shows how the United States has taken an unusual role in managing another nation’s resources.
Under Maduro, critics accused the government of corruption and mismanaging the country’s vast oil wealth. Venezuela has the largest proven oil reserves in the world. Production fell sharply over the past decade.
Why does the U.S. control Venezuela’s oil revenue?
The arrangement routes the oil revenue through the U.S. Treasury so it can be tracked and paid out through authorized channels. Payments go out only after they are approved, according to the report.
The oversight program is designed to show where the money goes, a step aimed at building trust after years of opaque spending.
Some critics have questioned how long the United States should control another country’s resources. Supporters say the oversight protects the money and the Venezuelan people.
What comes next?
The report did not say how long the oversight will last or how future oil revenue will be handled. It also did not detail who in Venezuela approves the spending requests.
Oil prices and production levels will shape how much money flows in the months ahead. Global oil markets have been volatile this year, in part because of the Iran war.
For Venezuelans, the question is whether the oil revenue translates into lower prices and better services. Many families there still face high prices for food and medicine.
How the oil revenue is managed could shape Venezuela’s recovery for years to come.
