Scoop: Trump officials broker massive U.S.-Venezuela gold deal
Add Axios as your preferred source to
see more of our stories on Google.
Interior Secretary Doug Burgum and Venezuela's interim president, Delcy Rodriguez, shake hands after their meeting at the Miraflores Presidential Palace in Caracas on Wednesday.
Venezuela's state-owned mining company on Monday inked a multimillion-dollar deal to sell as many as 1,000 kilograms of gold destined for U.S. markets, two sources familiar with the deal tell Axios.
Why it matters: The arrangement shows the tightening commercial bounds between Venezuela and the U.S. after President Trump ousted that nation's indicted socialist dictator and exerted de facto control over its oil-rich petroleum company.
Zoom in: The gold deal requires state-owned company Minerven to furnish 650 to 1,000 kilos of Gold Dore bars to the commodities trader Trafigura, according to one of the sources.
- The contract calls for 98% final gold content, the source said.
- Trafigura will shepherd the gold to U.S. refineries under a separate arrangement with the U.S. government, that source said.
- U.S. Interior Secretary Doug Burgum, who arrived in Venezuela Wednesday to discuss oil and mineral opportunities, helped shepherd the gold contract.
Today, a kilogram of pure gold costs about $166,000.
- The price varies depending on the market, but gold's price has risen amid global financial uncertainty.
- The price of oil has been rising since the U.S. and Israel attacked Iran, one of the world's largest oil producers.
Zoom out: This contract is the third extraction deal made under the Trump administration's supervision as the U.S. has taken control of Venezuela's most crucial and abundant resource, oil.
- Trafigura is also involved in those oil contracts worth more than $1 billion.
- "The oil is beginning to flow, and the professionalism and dedication between both countries is a very nice thing to see!" Trump posted Wednesday on Truth Social, also praising Venezuela's acting president, Delcy Rodriguez.
- Rodriguez on Wednesday announced a plan to reform the country's mining laws after she met with Burgum.
What they're saying: The U.S. ouster of Nicolas Maduro on Jan. 3 and its subsequent control of Venezuela's resources has drawn criticism from congressional Democrats and liberals, who accuse Trump's administration of imperialism and corruption.
- But one of the sources familiar with the gold and oil deals said they benefit Venezuela more now because the country has access to U.S. markets and a stable financial system.
- "There was so much corruption before in Venezuela involving black-market smugglers who skimmed money off the top," the source said.
- "Now the money for Venezuela's resources will go to Venezuela's government and people. And instead of the gold going overseas to Turkey or Iran, that resource is coming to the U.S."
