The prospect of US control over Venezuela’s sovereign assets would amount to a “colonial relationship” and set a “terrible precedent” for Latin America, former IMF Executive Director Paulo Nogueira Batista Jr. has told RT.

Reports have surfaced that some 31 tons of Venezuelan gold – valued at approximately $4 billion and held at the Bank of England – could be released to fund reconstruction following earthquakes in June, but potentially placed under US Treasury control.

The bullion has been inaccessible since 2018, when the Bank of England stopped recognizing the Venezuelan government and froze the country’s reserves. However, following weeks of US-backed negotiations, the Venezuelan government and opposition recently reached a rare agreement to jointly seek repatriation of the assets.

To overcome legal hurdles, they proposed converting the gold into funds to be deposited into US Treasury accounts rather than transferred to Venezuela, with spending subject to independent international audits.

The US Treasury had earlier issued a limited license allowing certain disaster-relief transactions involving Venezuela, which remains under US sanctions. Since the January 3 US operation that captured former President Nicolas Maduro, Washington has taken control of Venezuelan export revenues, particularly proceeds from oil sales. Caracas’ access to the funds is subject to US decisions.

In an interview released on Tuesday, Batista argued that placing the gold under US control would further violate Venezuela’s sovereignty and allow Washington to effectively “micromanage” how the country’s own wealth is spent. He noted, however, that such a move would hardly be surprising because “the US not only controls Venezuela after they abducted Maduro,” but “exerts enormous influence over Great Britain, including the Bank of England.” 

“Venezuela has become a protectorate of the United States. I wouldn’t even say neocolonial. It’s a colonial relationship,” Batista stated. He warned that placing the bullion under US control would set a “terrible precedent” for Washington’s relations with the rest of Latin America. “We are under threat by US aggressive imperialism, lack of respect for any rules, norms, the right of property.” 

Watch the full interview below.