Venezuela's government, opposition may cooperate to safeguard US assets
By Luc Cohen
NEW YORK, April 6 (Reuters) - Venezuela's government and its political opposition are seeking to coordinate their legal defense of the oil-rich country's United States assets, after Washington's official recognition of interim President Delcy Rodriguez raised questions about who could represent the country in U.S. courts.
Lawyers for Rodriguez's government and the opposition asked Manhattan-based U.S. Magistrate Judge Sarah Netburn on Monday to pause for 45 days a case in which creditors are seeking to seize funds linked to state oil company Petroleos de Venezuela PDVSA.UL while they determined who would represent Venezuela's interests.
The letter signaled potential cooperation between the opposition and Rodriguez's government in the safeguarding of U.S. assets including Houston-based oil refiner Citgo Petroleum PDVSAC.UL from creditors, including holders of debt issued by PDVSA and Venezuela's government, companies whose Venezuelan assets were expropriated, and victims of acts of alleged terrorism.
Venezuela's information ministry, which handles media requests on the government's behalf, did not immediately respond to a request for comment.
Relations between the opposition and Venezuela's socialist government have long been acrimonious. The opposition has controlled U.S. assets including Citgo since 2019, when Washington first imposed sanctions on PDVSA in a bid to pressure now-jailed President Nicolas Maduro to leave office.
Washington in March recognized Rodriguez as Venezuela's leader, following the capture of Maduro by U.S. forces. She is now preparing to take over the boards of PDVSA's U.S. subsidiaries including Citgo, Reuters reported on April 1, citing four people close to the preparations.
The U.S. recognition of Rodriguez's government prompted Netburn to ask the parties to the lawsuit to clarify who had authority to represent Venezuela in court.
Netburn on Monday granted the request to pause the case. Lawyers for the government and opposition are expected to update her on the selection of a lawyer to permanently represent Venezuela's interests by May 21.
