Venezuela to sell gold reserves to UAE without Russia’s help

Caracas plans to sell 29 tons of gold to the United Arab Emirates in return for euro in cash, Reuters cites a senior government official as saying. The money is needed to provide liquidity for imports of basic goods.

According to the official, the sale of the nation’s gold began with the shipment of 3 tons on January 26, following the export last year of $900 million in unrefined gold to Turkey.

The source denied Moscow’s involvement in the operation after rumors circulated this week that mysterious Russian-operated airplanes arrived in the country and planned to leave with Venezuelan gold on board. That is incorrect, according to the official.

Caracas reportedly needs cash for imports of basic products that it sells to the population at subsidized prices. A possible explanation for the payment for the gold in euros is US sanctions, which restrict Venezuela’s use of the dollar.

Venezuela’s central bank reportedly began to sell gold reserves to allied countries after supplies of unrefined gold from small mines began to run low.

The bank held 150 tons of gold in January 2018. By the end of November holdings had fallen to 132 tons between the central bank’s vaults and the Bank of England, according to central bank data.

The Bank of England has refused to return an estimated 31 tons of Venezuelan gold worth $1.2 billion. Bankers in Britain are allegedly concerned that Venezuelan officials would sell state-owned gold “for personal gain.”