US gets first $500 million Venezuelan oil deal, but the money isn’t going where you’d think

The Donald Trump administration completed its first sale of Venezuelan oil, bringing in $500 million. The money is now sitting in bank accounts controlled by the US government, with the main account located in Qatar. This choice of location has already caused concern among lawmakers in Washington.

The $500 million sale marks a big step for the administration, which took control of Venezuela mere days ago after removing former leader Nicolás Maduro. President Trump said the US will run the country for an unknown period of time. The plan is to take control of up to 50 million barrels of Venezuelan oil, sell it worldwide, and send the money back to Venezuela.

According to Semafor, White House spokeswoman Taylor Rogers praised the deal, saying “President Trump brokered a historic energy deal with Venezuela, immediately following the arrest of narcoterrorist Nicolás Maduro, that will benefit the American and Venezuelan people.” She added that the administration is having “positive, ongoing discussions” with oil companies about future investments in the country.

The offshore account raises questions about transparency and legal authority

The administration chose Qatar to keep the funds safe from being seized immediately. Venezuela owes international creditors, bondholders, and oil companies about $170 billion. An administration official called Qatar a neutral location where money can move freely with US approval and without risk of seizure.

President Trump signed an executive order last Friday explaining how the US plans to stop courts or creditors from taking any money from these oil sales. Last week, Trump told ConocoPhillips CEO Ryan Lance that the US is “not going to look at what people lost in the past, because that was their fault.” While the president has faced challenges with his promise to end conflicts quickly, he remains focused on this Venezuela deal.

Treasury Secretary Scott Bessent said his department is acting as the banker for this operation. He explained at the Economic Club of Minnesota that Treasury “will oversee the accounts” and “then, at the president’s direction [and] Secretary Rubio’s direction … be in charge of the disbursement that goes back into Venezuela.” He added, “We’re the bankers here; we don’t direct the funds.”

The decision to place the main account in Qatar has drawn strong criticism from Democrats. Senator Elizabeth Warren said there is “no basis in law for a president to set up an offshore account that he controls so that he can sell assets seized by the American military.” She added that “That is precisely a move that a corrupt politician would be attracted to.” Some observers have raised concerns about Trump’s recent behavior in office, adding to the scrutiny.

Senator Jack Reed of Rhode Island said lawmakers are “waiting for a briefing on the details” about how the money will be managed. Reed said, “I am innately suspicious” of using a Qatari account, suggesting the bank might be connected to other US foreign policy pressures. Despite the concerns, the administration expects more sales soon, with Chevron believing it can increase production by 50% within two years.