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The top Democrat on the House Oversight Committee, California Rep. Robert Garcia, is asking oil firms for more information following the Trump administration’s initial sale of Venezuelan crude, which Semafor first reported.
“The Committee seeks answers about the Trump Administration’s intentions” as well as “any agreements your companies have made,” Garcia wrote in a letter, first shared with Semafor, to the CEOs of Vitol and Trafigura.
The Trump administration, which issued both traders special licenses to sell the oil before their peers, has since doubled down on its handling of the resource. Secretary of State Marco Rubio told the Senate Foreign Relations Committee on Wednesday that the US plans to remain in control of the proceeds for the time being — and will eventually move cash from a Qatari bank account to “a US Treasury blocked account here in the US.”
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Rubio described the latter as “an account that belongs to Venezuela, but it has US sanctions as a blocking mechanism.” He privately told lawmakers earlier this month that officials want to prevent Venezuela’s creditors from tapping into the cash.
Rubio also said Wednesday that the US controls “the dispersal of the money” but not “the actual money,” with Venezuela submitting “budget request[s]” and the US approving them.
Florida Republicans in the House have raised concerns that Venezuela’s interim president, Delcy Rodríguez, may still find a way to misuse the funds. Some legal experts said the plan could also clash with laws that dictate how the US can spend money.
“If the US government is controlling how Venezuela may spend oil-sale proceeds, that raises serious questions under the Miscellaneous Receipts Act,” attorney Scott Levy said. “On its own, calling the funds ‘Venezuela’s’ doesn’t resolve those concerns given the degree of US control being exercised.”
Other Democratic lawmakers have recently made requests similar to Garcia’s. Though they can’t force companies to comply right now, they could next year if they win enough seats in the midterms.
“Donald Trump is continuing to use his position as president to enrich himself while he deceives the American people and exploits Venezuela,” Garcia said in a statement. “Oversight Democrats will not stop until we know exactly what companies are profiting from these foreign policy decisions.”