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Venezuelan Gold Stuck in US Warehouses Over Criminal Ties Fears
(MENAFN) Venezuelan gold brought into the United States under a Washington-backed arrangement is sitting unsold in warehouses, as refiners demand proof it did not come from criminal networks, according to a report published Monday by The New York Times.
The Trump administration opened the American market to Venezuelan gold in March, part of a widening push to deepen economic ties with the interim government led by Delcy Rodriguez.
Under the deal, Minerven, Venezuela's state-owned mining company, agreed to supply gold for the US market through Trafigura, the global commodities trader. Trafigura committed to buying between 650 and 1,000 kilograms (1,433 and 2,205 pounds) of gold dore bars, which were shipped to the United States for refining and resale.
Some American refiners have refused to take the metal. According to the Times, they cannot certify that it was free of ties to criminal groups, illegal mining or other illicit activity.
The newspaper reported that informal mining operations in southern Venezuela hand over part of their output to the Tren de Guayana criminal group in return for protection. One mining leader told the paper that roughly 20% of his operation's gold goes to the gang.
The Times also reported that Trafigura bought millions of dollars' worth of gold before independent auditors had inspected the mines covered by the agreement.
Trafigura said its due diligence is still under way. The company said audits of the sites it has inspected found no evidence of human rights violations, conflict financing, illegal taxation, extortion or involvement by illegal actors. It plans to source gold from two industrial mines under military protection, a step meant to keep criminal groups out of the supply chain.
Minerven remains under US sanctions, even as the Trump administration has authorized transactions involving Venezuelan gold as part of its broader policy toward Caracas. The arrangement reflects Washington's effort to expand economic ties with Venezuela and secure greater access to its mineral resources.
The Trump administration opened the American market to Venezuelan gold in March, part of a widening push to deepen economic ties with the interim government led by Delcy Rodriguez.
Under the deal, Minerven, Venezuela's state-owned mining company, agreed to supply gold for the US market through Trafigura, the global commodities trader. Trafigura committed to buying between 650 and 1,000 kilograms (1,433 and 2,205 pounds) of gold dore bars, which were shipped to the United States for refining and resale.
Some American refiners have refused to take the metal. According to the Times, they cannot certify that it was free of ties to criminal groups, illegal mining or other illicit activity.
The newspaper reported that informal mining operations in southern Venezuela hand over part of their output to the Tren de Guayana criminal group in return for protection. One mining leader told the paper that roughly 20% of his operation's gold goes to the gang.
The Times also reported that Trafigura bought millions of dollars' worth of gold before independent auditors had inspected the mines covered by the agreement.
Trafigura said its due diligence is still under way. The company said audits of the sites it has inspected found no evidence of human rights violations, conflict financing, illegal taxation, extortion or involvement by illegal actors. It plans to source gold from two industrial mines under military protection, a step meant to keep criminal groups out of the supply chain.
Minerven remains under US sanctions, even as the Trump administration has authorized transactions involving Venezuelan gold as part of its broader policy toward Caracas. The arrangement reflects Washington's effort to expand economic ties with Venezuela and secure greater access to its mineral resources.
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