Venezuela's interim government has agreed to submit a monthly "budget" to the Trump administration in exchange for access to oil-sale proceeds held in an offshore account initially managed by Qatar, Secretary of State Marco Rubio said Wednesday, describing the arrangement as a stopgap plan that immediately drew sharp skepticism from Democrats.
Testifying before the Senate Foreign Relations Committee, Rubio said the United States would release funds from an account financed by Venezuelan oil sales that remain subject to U.S. sanctions, with the money intended to keep basic public services operating while Venezuela's leadership transition unfolds.
Rubio acknowledged the arrangement was unusual and said it was designed as a short-term fix to a "fiscal crunch."
"I understand it's novel, but it's the best we could come up with in the short term," Rubio said.
The plan places Qatar in an initial custodial role for the proceeds, a choice Democrats questioned for its legality and transparency.
Rubio said a third-party account was necessary because U.S. sanctions and potential claims by American creditors could otherwise complicate disbursement, as well as legal issues tied to Washington’s treatment of Venezuela's former government.
"They needed money in the immediacy to fund the police officers, the sanitation workers, the daily operations of government," Rubio said. "They have pledged to use a substantial amount of those funds to purchase medicine and equipment directly from the United States."
Rubio's appearance was his first public testimony since U.S. forces captured Venezuela's leader, Nicolas Maduro, earlier this month.
Rubio told senators the administration had established a "very respectful and productive line of communication" with the government of Delcy Rodriguez, who assumed power after Maduro's removal.
Rubio said the United States does not "intend or expect" to use military force "at any time."
However, in written remarks submitted to the committee but not delivered, Rubio warned the United States was "prepared to use force to ensure maximum cooperation" if necessary.
Democrats challenged the administration's legal footing and the absence of publicly released documentation spelling out how the system will work, how vendors will be selected, and what auditing safeguards will apply.
"I think this is novel. I think it's funky. I think it may not even be permissible," said Sen. Brian Schatz, D-Hawaii, who questioned the administration's authority and the lack of a publicly released agreement.
Rep. Lloyd Doggett, D-Texas, said Rubio's testimony "raised more questions than answers," warning there were "currently no safeguards" to prevent misuse of funds and accusing the administration of "unlawfully refusing to honor debts owed to U.S. institutions."
Sen. Christopher S. Murphy, D-Conn., criticized the approach bluntly. "You are taking their oil at gunpoint," he said, adding, "I think a lot of us believe that that is destined for failure."
The administration has portrayed the arrangement as temporary oversight meant to prevent further collapse in a country whose economy and public services have been battered for years and whose oil sector has been constrained by sanctions and mismanagement.
Venezuela holds the world's largest proven crude reserves, and U.S. officials say any near-term oil revenue should be directed to essential services rather than siphoned off by corruption or diverted abroad.
Theodore Bunker ✉
Theodore Bunker, a Newsmax writer, has more than a decade covering news, media, and politics.
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