Venezuela asks UN to manage frozen funds

Venezuelan President Nicol s Maduro speaks with Belize's Prime Minister Johnny Brice o from Miraflores presidential palace in Caracas on November 25, 2022. AFP MEXICO CITY -- Venezuela's government and opposition have asked the United Nations to manage a fund for billions of dollars now held in foreign banks, which will gradually be unfrozen to combat a humanitarian crisis in the oil-rich nation, delegates announced on Saturday in Mexico City.

Sources told Reuters last month that the frozen funds amount to more than $3 billion.

The money, held in Venezuelan-owned accounts overseas, was frozen by the US and European banks after the US ramped up sanctions under the administration of President Donald Trump, designed to pressure President Nicolas Maduro to take steps toward free elections.

After being on ice for more than a year, talks between Maduro's government and its political opponents resumed in Mexico City on Saturday.

The talks are an important step towards restoring democracy to Venezuelans, said Antony Blinken, US Secretary of State.

He said on Twitter that he will look to the parties to reach lasting agreements that set the course for free and fair presidential elections in 2024.

Maduro wrote a statement on Twitter, saying that they will always strive for dialogue with all Venezuelan society. We continue to take important steps for the well-being of our country. Following the announcement for a UN-administered fund, the US Treasury Department issued a license for Chevron, the second largest US oil company, to expand operations in Venezuela, allowing it to import Venezuelan crude into the United States.

The delegation was led by Congress leader Jorge Rodriguez of Venezuela's ruling United Socialist Party PSUV and the opposition group was headed by politician Gerardo Blyde.

Maduro said that the aim of the talks was to recover the kidnapped resources for public investment. Then we will see what other issues can be discussed. The funds will be used to stabilize the country's electric grid, improve education infrastructure and deal with the impact of this year's deadly rains and flooding.

It is part of a broad agenda that covers US sanctions on Venezuela, conditions for the next presidential elections and the status of hundreds of political prisoners, though these issues won't be discussed in this round of talks.

The European Union said in a statement that this agreement provides the basis for further progress.

READ MORE: Venezuela files claim to force the Bank of England to hand over gold.

More than 7.1 million Venezuelans have left their country this year, many moving to other Latin American countries or the United States as Venezuela struggles high inflation and food and medicine shortages, according to UN estimates. More than half of Venezuelan migrants don't have access to three meals a day, according to UN estimates.

A survey done by local universities showed that 78 percent of the population was worried about lack of food in Venezuela, compared to 88 percent in 2021.

Some US and Venezuelan critics raised concerns that the liquidity injection could boost Maduro's credentials before the country's 2024 elections.