Venezuela heads back to court over £800m pot of gold in the Bank of England
The Venezuelan central bank is heading to court in London today, as it appeals a ruling from over the summer that affirmed the UK’s recognition of Juan Guaido as the country’s interim leader.
Banco Central de Venezuela (BCV) has brought a case at the Court of Appeal to decide ownership of a £800m horde of gold, which is currently being held by the Bank of England.
BCV launched the legal action earlier this year, supported by Venezuela’s disputed incumbent President Nicolas Maduro, to regain control of the gold. However the UK does not recognise Maduro’s authority on the matter over western-backed rival Guaido.
The bank has said if it wins its case, it will sell the gold to pay for basic goods from the United Nations Development Programme to help tackle coronavirus on the continent.
BCV board solicitor Sarosh Zaiwalla said in a statement to Sky News: “This case raises a number of issues of public international law, which forbids the interference by any country in the internal affairs of another sovereign nation.
“The outcome in this case could present a further threat to the international perception of English institutions as being free from political interference, as well as the Bank of England’s reputation abroad as a safe repository for sovereign assets.
“Mr Maduro’s government remains in sole, undisputed control of Venezuela’s instruments of state and health system.”
BCV has a board based in Venezuela that was appointed by Maduro. However there is also another based outside the country, created and supported by Guaido.
The legal team for the Guaido-backed BCV board has argued that the UK’s decision to respect Guaido as the country’s interim leader means the gold should stay within the Bank of England.
The Bank of England has found itself caught in the crossfire between the two sides, but said it remains impartial in the matter.
The hearing at the Court of Appeal is expected to last until Thursday.