Venezuela demands $4bn in UK-held gold to fund earthquake recovery

Venezuela is demanding $4billion in gold stashed away in the Bank of England to navigate its way out of the catastrophic earthquakes.

Britain has long refused to release the 31 metric tonnes of Venezuelan gold it has locked away in underground vaults because it did not recognise the legitimacy of Nicolas Maduro’s election.

For years the Bank and the UK government have been fighting to keep the bars – that is despite the President’s capture by the US in January.

Despite multiple twists and turns, the case has remained unresolved.

In the aftermath of the twin earthquakes at the end of June, the South American nation is pushing to use the cash for its recovery efforts.

Interim President Delcy Rodriguez said the government has agreed to focus on projects aimed at rebuilding households, health capacities, electricity availability and clearing rubble, and to this end, “concentrate efforts to promote the recovery of Venezuela’s international assets ⁠in the Bank of England.”

This comes a month after she pleaded with King Charles to request that the gold be released from the vaults.

“That gold belongs to our people and should be used to address the terrible, tragic consequences of this double earthquake,” Rodríguez said on state television then.

She added: “Venezuela has the resources to recover, to get back on its feet.”

The politician expressed the urgent need to recover the assets in order to channel them directly towards the social welfare of the affected people.

Following severe government mismanagement, corruption, as well as US sanctions, Venezuela has been plunged in an economic collapse for over a decade.

Its central bank said the earthquakes had contributed to inflation rising to 19.9 percent in July compared to 13.8 percent the prior month.

It said it expected inflation to decline in August.

With July’s result, year-on-year inflation stands at 575.9 percent, ⁠according to Reuters calculations based on figures from the central bank.

More than 6,000 people were killed, 16,740 others injured, and 17,907 lost their homes in the back-to-back tremors on the evening of June 24.

Up to 6.8 million people have been affected by the earthquakes with an estimated that 1.8 million people, including 680,000 children, in need of urgent humanitarian assistance.

Buildings and infrastructure have been severely damaged, with transport systems and the international airport disrupted.

At least 1,000 buildings have been reported damaged or destroyed, including hospitals, schools and transport.