WASHINGTON/CARACAS, Oct 25 (Reuters) – Venezuelan politicians are discussing proposals for a fund that could release over $3 billion to provide humanitarian aid to Venezuela through the United Nations, in a process that also involves officials from the U.S. State and Treasury Departments, according to nine people close to the talks.
The proposals offer a potential way to revive stalled political dialogue in Venezuela, and come as more Venezuelans try to reach, creating clashes among U.S. politicians over immigration.
Migrants arriving at the U.S.-Mexico border are prompting discussions on unfreezing Venezuelan funds held in foreign banks that would provide needed food and medicine, the sources told Reuters. The sources were not authorized to speak publicly on the topic.
According to the National Survey of Living Conditions (ENCOVI), conducted by Venezuelan universities, 94% of Venezuelans were living last year in poverty, while over half experienced moderate to severe food insecurity.
Some analysts and rights groups have said U.S. and Western sanctions have exacerbated the country’s deep economic crisis.
In 2019, the United States under former President Donald Trump and other Western countries imposed sanctions on Venezuela to block President Nicolas Maduro’s government from accessing oil revenue, freezing billions of dollars in Venezuela-government owned accounts overseas.
Washington and some European allies see the move of releasing the funds as essential to secure a “social agreement” between Venezuela’s government and its political opposition, the sources said.
The U.S. State and Treasury departments and Venezuela’s information ministry did not reply to requests for comment.
The United Nations continues to urge Venezuela and the opposition to engage in “an inclusive and meaningful dialogue that leads to negotiated solutions, with human rights as a central component,” said spokesman Stephane Dujarric. He did not comment on whether the U.N. has agreed to manage an aid program.
“Resource mobilization remains a key challenge,” he said, adding plans for 2022-2023 aid are 16.5% funded, and the U.N. is calling for support.
U.S. National Security Council spokesperson Adrienne Watson told Reuters that any discussions on providing humanitarian aid to Venezuelans is being led by Venezuelans. “We stand ready, consistent with U.S. law, to calibrate our sanctions policy on the basis of a Venezuelan-led process.”
President Joe Biden’s administration has said any sanction easing on Venezuela would only come after Maduro moves in a concrete way to restore democracy.
HUNTING FOR MONEY
A U.N.-administered fund first was proposed by Maduro in 2020, when he called for a “legally binding international instrument on development” to overcome poverty and inequality. Later, he has tried unsuccessfully to release funds around the globe.
Maduro’s calls did not stir action amid Trump’s “maximum pressure” strategy to oust him.
Washington has provided $1.94 billion in humanitarian aid to Venezuela and nations sheltering Venezuelans since 2017, but the money has done little to curb migration with over 6 million Venezuelans fleeing the country.
The new fund could face opposition from some hardliners in the U.S. Congress who support continued pressure on Maduro. It also has some in Venezuela’s opposition parties worried about the political impact of releasing funds that Maduro could claim credit for ahead of a potential 2024 presidential election.
The Department of Homeland Security is now only allowing entry from Venezuela or a third country for applicants with family members living legally in the United States.
U.S officials have argued the aid fund could keep Venezuelans from fleeing by improving living conditions through better access to food, medicine and health care, and financing infrastructure projects to fix Venezuela’s unstable power grid, the sources said.
The United Nations drafted a first proposal to oversee the fund in mid-October, the sources…
Read More: EXCLUSIVE U.N. could administer over $3 bln in funds to aid Venezuela – sources