New Executive Order Shields Venezuelan Oil Revenue In US Government Custody

On January 9, 2026, President Donald Trump issued Executive Order 14373 titled "Safeguarding Venezuelan Oil Revenue for the Good of the American and Venezuelan People" (the "Order"), declaring a national emergency and creating a targeted legal regime to protect certain Venezuelan oil‑related revenues held in designated US Department of the Treasury accounts from attachment and other judicial process. The Order effectively centralizes US government control over any transfers or dealings in those funds to advance US foreign policy and national security objectives. The White House released an accompanying fact sheet (the "Fact Sheet") underscoring that the Order aims to safeguard Venezuelan oil revenue held in US Treasury accounts. This action represents a significant shift in the administration's approach to Venezuela, prioritizing US foreign policy and national security over the claims of commercial judgment creditors.

Key Features of the Order

National emergency declaration: The Order declares that attempts to attach or otherwise reach revenues in US government custody derived from the sale of Venezuelan natural resources or from the sale of diluents to the Government of Venezuela is an unusual and extraordinary threat to US national security and foreign policy within the meaning of the International Emergency Economic Powers Act ("IEEPA").

Sovereign immunity findings:The Order determines that the funds are sovereign property of Venezuela held by the United States in a governmental custodial capacity, which, as highlighted by the Fact Sheet, are preserved and shielded to support stabilization and diplomatic efforts, not private claim satisfaction.

Covered funds and scope: The protections apply to "Foreign Government Deposit Funds," defined as funds paid to or held by the US government in designated Treasury accounts "or funds on behalf of the Government of Venezuela" (including its agencies or instrumentalities such as the Central Bank of Venezuela and Petróleos de Venezuela, S.A.), and derived from the sale of Venezuelan natural resources from, or of the sale of diluents to, the Government of Venezuela or its agencies and instrumentalities ("Covered Funds").

• The clause referring to "funds on behalf of the Government of Venezuela or its agencies or instrumentalities," could be read to suggest a scope beyond deposits held in US Treasury accounts. However, read in the context of the Fact Sheet and stated policy objectives, it is more likely that the asset protections are intended to apply to proceeds of the US-administered marketing and sale of Venezuelan energy resources (and associated diluent sales) when those proceeds are deposited into designated Treasury accounts, regardless of whether these funds are held on behalf of the US government or on behalf of the Government of Venezuela. Accordingly, and unless and until clarified by binding agency guidance, pre-existing balances held in the name of the Government of Venezuela, including PDVSA or PDVSA affiliates at US financial institutions likely do not, by location or ownership alone, fall within the scope of the Order. That said, skilled litigants may attempt to argue in court that the above quoted language intends to protect any funds held on behalf of the Government of Venezuela or its agencies or instrumentalities.
• The Order uses the term "natural resources" which suggests the potential for coverage of revenues derived from sales of Venezuelan assets other than oil, though based on the Fact Sheet, oil appears to be the Trump Administration's focus at this time.

Prohibition on judicial process and dealings: The Order renders any attachment, judgment, decree, lien, execution, garnishment, or similar judicial process relating to the Covered Funds "null and void." This effectively creates a legal shield around these assets, preventing private parties (such as companies with arbitration awards or court judgments against the Government of Venezuela, its agencies and instrumentalities). The Order also prohibits transfers, payments, exports, withdrawals, or other dealings in those funds unless expressly authorized by regulations, directives, or licenses issued under the Order. The White House emphasizes that dealings are barred absent authorization so the funds remain preserved for US policy objectives.

Administration and licensing: The Secretary of the Treasury, in consultation with the Secretaries of State and Energy and the Attorney General, is authorized to take actions and promulgate rules as necessary to carry out the Order, including licensing limited dealings consistent with US policy. The framework anticipates congressional reporting consistent with the National Emergencies Act and IEEPA practices.

While the Order provides robust protection for "Foreign Government Deposit Funds" held in designated U.S. Treasury accounts, it does not—by its own terms—convert balances maintained in pre‑existing commercial accounts of the Government of Venezuela, including PDVSA or PDVSA affiliates at US banks into Covered Funds. Instead, the covered category is expressly tied to funds "paid to or held by the US Government in designated Treasury accounts" on behalf of Venezuela and derived from sales of oil and diluent transactions.

As a result, balances at US banks appear to remain outside the Order's specific nullification of judicial process unless and until they are transferred into designated Treasury accounts pursuant to applicable authorization. Those commercial‑bank balances remain subject to the separate Venezuela sanctions framework and any applicable court process or OFAC licensing requirements, which the Order does not displace for non‑Treasury‑held funds.

Relationship to Prior Executive Actions

The Order appears designed to be the operative, unitary regime governing the specified Treasury‑held funds and applies notwithstanding earlier executive actions to the extent they would otherwise block, regulate, or affect those funds. The Fact Sheet similarly notes that transfers or dealings are prohibited except as authorized, preserving the Covered Funds for policy objectives, including reducing illegal migration, combating narcotics flows, and countering malign regional actors.

Practical Implications And Key Takeaways

Creditors and litigation posture: Creditors and judgment holders cannot use attachment, execution, or similar judicial mechanisms to reach the Covered Funds; any such process is "null and void" under the Order. The sovereign‑immunity findings and no‑waiver language strengthen defenses to private claims against the Covered Funds. Creditors should stay vigilant to ensure their enforcement strategy is informed by the quickly evolving landscape with respect to Venezuela and its assets.

Financial institutions: Banks should not assume that balances held on behalf of Venezuela, including PDVSA or PDVSA‑affiliates are protected by this Order. Only funds meeting the criteria set forth in the Order are covered.

Energy sector participants: The licensing architecture places Treasury (in consultation with State, DOJ, and Energy) at the center of any authorized dealings with Covered Funds. Industry participants should expect any permitted uses to align with stabilization and diplomatic objectives highlighted by the White House. Furthermore, energy companies should monitor regulatory developments regarding Venezuelan hydrocarbon sales and US custodial management of related revenues to identify potential risks and opportunities.

Corporate compliance: Companies should continue to treat Government of Venezuela funds and assets as subject to blocking US sanctions unless and until further action on the current sanctions regime, which remains intact following this Order.