Venezuela's government, opposition may cooperate to safeguard US assets

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• Government and opposition request 45-day pause in US asset seizure case

• Venezuela seeks to protect assets like Citgo from creditors

• Judge requests update on legal representation for Venezuela ​by May 21

NEW YORK, April 6 (Reuters) - Venezuela’s government and its political ‌opposition are seeking to coordinate their legal defense of the oil-rich country’s United States assets, after Washington’s official recognition of interim President Delcy Rodriguez raised questions about who could represent the country in ​U.S. courts.

Lawyers for Rodriguez’s government and the opposition asked Manhattan-based U.S. Magistrate ​Judge Sarah Netburn on Monday to pause for 45 days a ⁠case in which creditors are seeking to seize funds linked to state oil ​company Petroleos de Venezuela (PDVSA.UL) while they determined who would represent Venezuela’s interests.

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The letter signaled potential ​cooperation between the opposition and Rodriguez’s government in the safeguarding of U.S. assets including Houston-based oil refiner Citgo Petroleum (PDVSAC.UL) from creditors, including holders of debt issued by PDVSA and Venezuela’s government, companies ​whose Venezuelan assets were expropriated, and victims of acts of alleged terrorism.

Venezuela’s information ministry, ​which handles media requests on the government’s behalf, did not immediately respond to a request for ‌comment.

Relations ⁠between the opposition and Venezuela’s socialist government have long been acrimonious. The opposition has controlled U.S. assets including Citgo since 2019, when Washington first imposed sanctions on PDVSA in a bid to pressure now-jailed President Nicolas Maduro to leave office.

Washington in March ​recognized Rodriguez as ​Venezuela’s leader, following ⁠the capture of Maduro by U.S. forces. She is now preparing to take over the boards of PDVSA’s U.S. subsidiaries including Citgo, ​Reuters reported on April 1, citing four people close to the ​preparations.

The U.S. ⁠recognition of Rodriguez’s government prompted Netburn to ask the parties to the lawsuit to clarify who had authority to represent Venezuela in court.

Netburn on Monday granted the request ⁠to pause ​the case. Lawyers for the government and opposition ​are expected to update her on the selection of a lawyer to permanently represent Venezuela’s interests by May ​21.

Reporting by Luc Cohen in New York; Editing by Noeleen Walder and Bill Berkrot

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Luc Cohen

Thomson Reuters

Reports on the New York federal courts. Previously worked as a correspondent in Venezuela and Argentina.

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