Venezuela closing in on deal to move $4bn gold reserves from Bank of England to New York

Venezuela is nearing a deal to move $4 billion (£2.9 billion) in gold from the Bank of England to the Federal Reserve Bank of New York after a years-long legal tussle, it has been reported.

Led by acting president Delcy Rodriguez, the government and the opposition reached a rare consensus in August - to work together to recover 31 tonnes of precious metal locked away in London’s underground vaults.

Under the terms of the agreement, the Interim President would gain legal control over the bullion, but would not be unable to sell it immediately, the Financial Times reported.

“The gold is going to the US but Delcy won’t have direct access to it,” said an opposition figure reportedly involved in the ongoing negotiations . “It will be supervised and restricted.”

The reserve could be deployed as collateral for government borrowings, including for reconstruction after the twin earthquakes devastated the South American country at the end of June, killing more than 6,000 people.

The World Bank previously estimated that the damage of what has been described as the biggest natural disaster in decades amounts to $19.6 billion (£14.4 billion).

If finalised, the deal would bring an end to a major dispute, which has lasted almost eight years, after Britain refused to recognise Nicolas Maduro as the legitimate president of Venezuela, claiming the 2018 elections were rigged.

In practice, the move blocked the Venezuelan government’s access to the gold.

The bullion has since been the ‌subject of a prolonged legal dispute in ⁠UK courts, and has not been released despite Maduro's capture by the US ⁠in January.

The UK Foreign Office said the government is not a party in the legal case to determine who should have control of the reserve.

“The matter is being considered through independent legal processes and is not a decision that HMG can direct or influence,” a spokesperson said. “UK Courts and the Bank of England are independent of HMG.

“The UK maintains its longstanding position of support for a democratic transition of power in Venezuela which reflects the will of the Venezuelan people.”

Reports of the deal come as Donald Trump is making plans for a first-ever meeting with Rodriguez, as early as next week, sources familiar with the discussions told Axios.

It is unclear if the deal will be discussed, if the meeting between the two leaders takes place.

“Iran is tough, but Venezuela is without a doubt the president's top success and Delcy is a key to that," a Trump adviser cited by Axios said. “Unless something goes really wrong, the president wants to make time.”

The Independent has contacted the Bank of England for a statement.