• Disrupting Power Since 2015
  • Donate
  • Login
Wednesday, May 21, 2025
  • Login
  • Register
Canary
MEDIA THAT DISRUPTS
  • News
    • UK
    • Global
    • Analysis
    • Trending
  • Editorial
  • Features
    • Features
    • Environment
    • Lifestyle
    • Health
    • Money
    • Science
    • Business
    • Tech
    • Travel
    • Sport & Gaming
  • Media
    • Video
    • Cartoons
  • Opinion
No Result
View All Result
MANAGE SUBSCRIPTION
SUPPORT
  • News
    • UK
    • Global
    • Analysis
    • Trending
  • Editorial
  • Features
    • Features
    • Environment
    • Lifestyle
    • Health
    • Money
    • Science
    • Business
    • Tech
    • Travel
    • Sport & Gaming
  • Media
    • Video
    • Cartoons
  • Opinion
No Result
View All Result
Canary
No Result
View All Result

As case of stolen Venezuelan gold reaches court, the UK still backs coup leader Juan Guaidó

Peter Bolton by Peter Bolton
20 July 2021
in Analysis, Global, UK
Reading Time: 5 mins read
172 2
A A
3
Home Global Analysis
322
SHARES
2.5k
VIEWS
Share on FacebookShare on Twitter

As The Canary has extensively reported, since January 2019 Venezuela has been subjected to a US-backed coup attempt. The putsch began when a previously unknown member of Venezuela’s legislature declared himself ‘interim president’. He was quickly recognized as the oil rich South American country’s legitimate leader by the US and most of its Latin American and Western European allies, including the UK government of then-prime minister Theresa May.

As part of the coup attempt, the Bank of England unilaterally froze assets belonging to Venezuela. But the beleaguered nation will soon have the opportunity to recoup its stolen property in court. And as the case’s hearing approaches, the UK government has made one last desperate move. Evidently, it hopes to salvage whatever’s left of its international credibility by avoiding the likely embarrassment of having to hand it back to its rightful owner.

A sycophantic gesture that backfired bigtime

On 19 July, the UK government issued a statement reconfirming its support for Venezuelan coup attempt leader Juan Guaidó. It appears that the move could be intended to bolster the UK’s position ahead of a legal bid by the Venezuelan Central Bank (BCV in its Spanish initials). Acting on behalf of the democratically-elected government of Nicolás Maduro, the BCV seeks the repatriation of gold held by the Bank of England. Reports differ on the exact value, though estimates usually fall within the range of just below $1bn to $1.8bn. Legal representatives from both sides appeared in court shortly before this report went to press.

About a month after the coup attempt was launched, in the face of growing sanctions and US hostility, the Venezuelan government requested a return of the gold to Venezuela. However, the Bank of England froze the assets on the spurious basis that the Maduro government was no longer the rightful government of Venezuela. The UK government then pressured the Bank of England into instead granting access to the funds to Guaidó. This move was based on its recognition of him as Venezuela’s rightful leader. Experts in international affairs quickly pointed out that the UK’s action flies in the face international norms of behavior.

Moreover, just a few months after the beginning of the coup attempt, it became increasingly clear that Guaidó had failed to overthrow the government. As the months turned into years, Guaidó began to cut an increasingly pathetic figure. And since he never seized the reins of the Venezuelan state, his political faction slowly degenerated into a shadow government with no real power. The BCV, meanwhile, filed a lawsuit against the Bank of England in May 2020. As part of the suit, it requests the return of the roughly 14 tonnes of gold to Venezuela. But so far, the Bank of England has refused to comply, precipitating a protracted court case.

Major victory for the BCV in court of appeal

In October 2020, the BCV won a major victory. A UK court of appeal overturned a decision that had earlier ruled that UK recognition of Guaidó constituted legitimate grounds for not handing the government over to the Maduro government. Now, it looks like the BCV is on the verge of outright victory. And the significance of this cannot be overstated; the gold represents roughly 15% of Venezuela’s entire foreign currency reserves.

As part of its case, BCV’s lawyers argue that the Venezuelan government needs these funds in order to strengthen the country’s response to the  coronavirus (Covid-19) pandemic and increase investment in its health service. This seems perfectly reasonable, not least because Venezuela has struggled with both these goals in the face of crushing US sanctions and an economic crisis that has lasted roughly seven years. In February, as a result of these factors, United Nations rapporteur Alena Douhan, an expert on unilateral coercive measures, called on the UK and other European states to “unfreeze assets of the Venezuela Central Bank”.

UK’s isolation amidst growing international admission that coup attempt has failed

The UK’s position with respect to the coup attempt, meanwhile, has become increasingly desperate and isolated. As The Canary reported in January, the European Union (EU) withdrew its recognition of Guaidó as Venezuela’s legitimate head of state. This was because his party had boycotted elections to the National Assembly, Venezuela’s legislature, and therefore he no longer even held a seat in the body.

Guaidó’s claim to the presidency was based on a provision of the Venezuelan constitution that says that the head of the National Assembly assumes the presidency in the case of a breakdown in democracy. Though this claim was itself highly dubious in the first place, the EU at least had the decency to follow the logic to its natural conclusion. And so, because Guaidó was no longer even a member of the National Assembly, let alone its leader, it concluded that it could no longer support his claim to the presidency.

This latest saga exposes how the UK’s position on Venezuela has become an increasing embarrassment. Clearly, a return of the gold to its rightful owner would be a major victory for national sovereignty and international norms of behavior, as well as another nail in the coffin of the Tory government’s credibility when it comes to international affairs.

Featured image via Wikimedia Commons – Hossein Zohrevand and Flickr – Dark Dwarf

Share129Tweet81
Previous Post

Go forth and multiply

Next Post

British Gas dispute ends as workers accept improved pay deal

Next Post
British Gas sign

British Gas dispute ends as workers accept improved pay deal

oregon and world on fire

The world is literally on fire and our leaders are fanning the flames

John Paul Wootton's campaign team outside Maghaberry Prison Belfast

Prison protest demands an end to discrimination against John Paul Wootton

Daniel Morgan

Met accused of ‘betrayal of public’ over 1987 unsolved murder

DVLA office block

Union: ‘catastrophic’ backlog at DVLA is due to staff being put ‘at risk’

Please login to join discussion
Jeremy Corbyn
Analysis

Jeremy Corbyn suggests a new party will be in place before 2026 elections

by Ed Sykes
21 May 2025
Donald Trump tax and debt
Analysis

Trump’s tax breaks for his rich mates could add $3 trillion to US national debt

by Steve Topple
21 May 2025
Co-op Israeli products
Trending

Pressure rises on Co-op board to follow through on boycott of Israeli products

by Ed Sykes
21 May 2025
Liz Kendall dodging a question about DWP cuts
Trending

Watch as Liz Kendall scurries away from a disabled person calling out DWP cuts

by Steve Topple
21 May 2025
Liz Kendall talking about DWP PIP cuts
Analysis

Liz Kendall just lied again about how many people will be hit by DWP PIP cuts

by Steve Topple
21 May 2025
  • Contact
  • About & FAQ
  • Get our Daily News Email
  • Privacy Policy
  • Cookie Policy

The Canary
PO Box 71199
LONDON
SE20 9EX

Canary Media Ltd – registered in England. Company registration number 09788095.

For guest posting, contact [email protected]

For other enquiries, contact: [email protected]

The Canary is owned and run by independent journalists and volunteers, NOT offshore billionaires.

You can write for us, or support us by making a regular or one-off donation.

© Canary Media Ltd 2024, all rights reserved | Website by Monster | Hosted by Krystal | Privacy Settings

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • News
    • UK
    • Global
    • Analysis
    • Trending
  • Editorial
  • Features
    • Features
    • Environment
    • Lifestyle
    • Health
    • Money
    • Science
    • Business
    • Tech
    • Travel
    • Sport & Gaming
  • Media
    • Video
    • Cartoons
  • Opinion

© 2023 Canary - Worker's co-op.

Before you go, have you seen...?

Jeremy Corbyn
Analysis
Ed Sykes

Jeremy Corbyn suggests a new party will be in place before 2026 elections

Donald Trump tax and debt
Analysis
Steve Topple

Trump’s tax breaks for his rich mates could add $3 trillion to US national debt

Co-op Israeli products
Trending
Ed Sykes

Pressure rises on Co-op board to follow through on boycott of Israeli products

Liz Kendall dodging a question about DWP cuts
Trending
Steve Topple

Watch as Liz Kendall scurries away from a disabled person calling out DWP cuts

ADVERTISEMENT
Analysis
Nathan Spears

Vote for the Press Photograph of the Year 2024

Image by Burkard Meyendriesch from Pixabay
Feature
Nathan Spears

Why Santiago Ways is the Leading Choice for Walking the Camino de Santiago

Environment
Nathan Spears

EU elections point to growing public desire for new policymaking approach in Brussels