Catch up on the details from Reuters’ article today.
Interestingly, the current legal status was left out. A court ruled a few weeks ago that Venezuela lost the case due to default, arguing that Gold Reserve confirmed successful service of process in January and Venezuela did not respond. This caused quite a stir, particularly from a Twitter user named Federico Alves, who has 50,000 followers eager to retweet him. He was ranting about how this was the worst disaster to befall his nation. I suggested he calm down, explaining that this isn’t necessarily a debt default and that the case is far from over. Although I’m no expert, those I consult indicate that it may still take some time before any assets are seized, at least in the US context.
Yesterday, the court confirmed my thoughts:
Now you’re in the know, keep an eye on that court in early June. Anyone wanna wager on how long this case drags on? I’m startin’ to think Luxembourg and France will proceed quicker.
The most striking aspect of this entire arbitration scenario involving Venezuela is that there are now over $3 billion in solid claims against Venezuela (including Gold Reserve’s $750 million, Owens Illinois around $450 million, ExxonMobil approximately $2 billion, alongside several smaller claims), each of which is now lower than the original claims, and yet, it’s taking forever to seize assets. Despite concerns from those like myself about the potential issues in an international system allowing companies to sue nations, it seems that states still maintain the upper hand. (As pointed out by Noel Maurer.)