Who will get Venezuela's gold? - All wait for the answer | Eurasia Diary - ednews.net

22 July, Monday

Who will get Venezuela's gold? - All wait for the answer

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Venezuela government launched repatriation of gold from foreign reserves for solving the economic crisis in the country.

Since last year Maduro’s government has been trying to repatriate gold from the Bank of England, fearing it could be caught up in international sanctions against his administration.

Those holdings jumped to around $1.3 billion after Venezuela’s central bank closed out a gold swap deal with Deutsche Bank, sources told Reuters last week.

In letters to British Prime Minister Theresa May and Bank of England Governor Mark Carney, Guaido said Maduro government officials were seeking to sell the gold and move the proceeds to Venezuela’s central bank.

“I am writing to ask you to stop this illegitimate transaction,” wrote Guaido. “If the money is transferred ... it will be used by the illegitimate and kleptocratic regime of Nicolas Maduro to repress and brutalize the Venezuelan people.”

Eurasia Diary asked an expert of law sciences Farhad Mehdiyev for the explanation of the process.

 "When such contracts are signed, if there is a disagreement between the parties, then they apply to the arbitration," Mehdiyev said.

"It may be that the case should be examined in England courts. However, states often do not accept the courts of other states, but accept the authority of international arbitration.

There are several International arbitrations. The most famous of them is located in London, Paris, Stockholm. "- Farhad Mehdiyev pointed out the solution of the problem.

Venezuela is struggling under hyperinflation now approaching 2 million percent annually. A broad economic collapse has fueled an exodus of some three million people since 2015.

On Sunday, Israel joined the countries backing the 35-year-old Guaido, and President Donald Trump’s administration said it had accepted Venezuelan opposition figure Carlos Alfredo Vecchio as the country’s diplomatic representative in the United States.

The United States on Saturday called on the world to “pick a side” on Venezuela and urged countries to disconnect financially from Maduro’s government.

Ulvi Ahmedli

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