By Jason Douglas in London and Kejal Vyas in Bogota, Colombia
A British judge rejected a claim by Venezuela President Nicolas Maduro seeking the release of $1 billion of the country's gold reserves held in a Bank of England vault, a decision that sustains U.S.-led efforts to financially cut off the authoritarian leader's regime.
The Maduro regime said it intended to use the bullion to finance coronavirus relief efforts but the U.S.-supported opposition argued in court that it would be pilfered by regime officials.
Nigel Teare, the judge who heard the claim, in a ruling Thursday said the U.K. government officially recognized U.S.-backed opposition leader Juan Guaido as Venezuela's legitimate president and that British courts therefore must do the same.
"Where Her Majesty's Government unequivocally recognises a person as the de jure or constitutional President the court must give effect to that unequivocal recognition," Justice Tare said in a written judgment. "The judiciary and the executive must speak with one voice."
The decision may set a precedent over how international powers will handle the political crisis plaguing oil-rich Venezuela, where authoritarian leader Nicolas Maduro and his U.S.-backed rival Juan Guaido both lay claim to the presidency as well as billions of dollars in foreign assets and accounts.
Since January 2019, the U.S. and dozens of its allies, including the U.K., have deemed Mr. Maduro illegitimate for alleged election fraud, corruption and rights abuses and recognized Mr. Guaido--who heads congress--as Venezuela's sole democratic leader.
Rival claims to legitimacy have put foreign governments in a tough spot. Some countries like the U.S. and Colombia have expelled Mr. Maduro's envoys and granted control over local assets to Mr. Guaido's interim government. Others, like the U.K. and European countries, have taken a more hybrid approach. They support Mr. Guaido but continue handling diplomatic and consular matters through envoys of Mr. Maduro, who maintains the loyalty of Venezuela's armed forces.
The power struggle has also produced a series of legal battles with both sides vying for everything from $5 billion in frozen government accounts abroad, to embassy properties to the U.S.-based refiner Citgo.
Write to Jason Douglas at jason.douglas@wsj.com and Kejal Vyas at kejal.vyas@wsj.com.
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07-02-20 0557ET
