Commodity Settlement Venezuela -- Gold DVP -- Abu Dhabi

Venezuela Commodity Traders Need Settlement in Compliant Non-US Jurisdictions

Venezuela's key exports — crude oil, gold, and petrochemicals — face 30-60 day payment delays through OFAC sectoral sanctions and banking isolation. LCORE's gold DVP eliminates the multi-hop SWIFT chain entirely: buyer deposits gold in Abu Dhabi escrow, commodity ships, delivery is confirmed, and gold releases to the exporter. Settlement completes in 2-3 business days with a minimum transaction size of $5M. No USD intermediary bank required.

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2-3
Working Days
0
USD / SWIFT
VES
Settlement
ADGM
Reg. 28158
Overview

Settling Venezuela commodity
transactions via gold

When VES payments are blocked by correspondent banking compliance, LCORE's gold DVP provides a neutral Abu Dhabi alternative. Venezuelan oil exporters can deposit physical gold into DVP escrow -- commodity delivers -- payment in VES confirms -- gold releases. 2-3 working days.

ADGM English Law governs. Lloyd's $200M insurance throughout. UAE geopolitically neutral -- not subject to US, EU, or UK sanctions regime.

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Confidential. Min $5M. ADGM 28158.

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FAQ

Frequently asked questions

Why do Venezuela exporters face settlement delays with international buyers?
Venezuela's banking sector routes USD payments through multiple correspondent banks, each adding compliance review and processing time. Total settlement typically takes 30-60 days. LCORE's gold DVP compresses this to 2-3 business days through single-point Abu Dhabi escrow, eliminating the entire correspondent chain.
What Venezuela commodities can be settled through gold DVP?
Primary exports including crude oil, gold, and petrochemicals all qualify for gold DVP settlement. Any physical commodity with verifiable shipment documentation — bill of lading, quality certificate, and quantity survey — can trigger the settlement mechanism. Minimum $5M per transaction.
How does gold DVP protect Venezuela exporters from currency risk during settlement?
Traditional SWIFT settlement exposes Venezuela exporters to 30-60 days of exchange rate movement. Gold DVP locks value at transaction date: gold collateral is denominated in USD equivalent, settlement occurs in 2-3 business days, and the exporter receives payment before currency drift becomes material.
Also see: DVP Settlement · Non-USD Commodity · Gold Escrow
Key Commodities

Venezuela commodity trade profile

Venezuela holds the world's largest proven crude oil reserves at approximately 300 billion barrels, primarily in the Orinoco Belt (extra-heavy crude requiring upgrading). Peak production reached 3.2 million barrels per day; PDVSA (Petróleos de Venezuela) currently produces approximately 800,000-900,000 barrels per day under severe operational and financial constraints. Venezuelan crude — primarily Merey, Diluted Crude Oil (DCO), and Bachaquero grades — exports primarily to China, Cuba, Russia, and indirect buyers using intermediary flag-of-convenience structures. Gold production from the Orinoco Mining Arc (Arc Minero), operated by Venezuelan military and Chinese companies, generates approximately 20-30 tonnes annually in official figures, with substantial additional informal production. Petrochemicals from Morón and El Tablazo complexes (partially operational). Coffee and cocoa from the Andean regions retain niche premium export potential for non-US buyers. Coltan, diamonds, and iron ore from Guiana represent undeveloped or informally exploited mineral commodity potential.

Banking Friction

Why Venezuela commodity traders need payment alternatives

Venezuela is subject to comprehensive US sanctions under OFAC's Venezuelan Sanctions Regulations, including sector-specific sanctions on PDVSA (oil), gold (via Executive Order 13850), and the Maduro government. PDVSA is an SDN-listed entity; US persons cannot transact with it. Non-US buyers of Venezuelan crude use intermediary structures involving Emirati, Chinese, and Russian trading companies that absorb the secondary sanctions risk. The bolívar (VES) has experienced hyperinflationary collapse — losing effectively 100% of its value multiple times since 2018 through denomination resets. Venezuela has no functional international banking access; all commodity payments route through UAE, Chinese, or Russian intermediary accounts. LCORE conducts full OFAC, EU, and UAE sanctions screening on all Venezuelan-origin mandates. Transactions involving PDVSA, Orinoco Mining Arc state entities, or the Maduro government are ineligible. Private Venezuelan commodity counterparties in non-designated sectors may be assessed under ADGM compliance review.