Venezuela is reportedly closing in on a historic agreement that could unlock approximately $4 billion worth of the country’s gold reserves after years of legal and political disputes over who controls the assets.

The Venezuelan government and a faction of the country’s opposition are nearing an agreement to transfer roughly 31 metric tons of gold currently held at the Bank of England in London to the United States, according to Reuters, citing seven people familiar with the negotiations.

Under the proposed arrangement, the gold could be transferred to the Federal Reserve Bank of New York, placing one of Venezuela’s most valuable overseas assets under a new framework of U.S. oversight.

The agreement has not yet been finalized.

A $4 Billion Treasure Locked in London

Venezuela’s gold has been at the centre of a years-long international legal battle.

The Bank of England has prevented Venezuelan authorities from accessing approximately 31 metric tons of bullion following disputes over which Venezuelan leadership had the legal authority to control the country’s overseas assets.

The fight over the gold became one of the most visible symbols of Venezuela’s political crisis, eventually reaching Britain’s courts.

Now, after years of deadlock, Venezuela’s acting government under Delcy Rodríguez and members of the opposition are working toward an agreement that could finally release the reserves.

But Venezuela Wouldn’t Simply Get $4 Billion to Spend

One of the most important details of the proposed deal is that the Venezuelan government would reportedly not be permitted to immediately sell the gold.

Instead, the reserves could potentially be used as collateral to borrow money.

That financing could help fund government spending and reconstruction efforts following the devastating earthquakes that struck Venezuela in June.

The arrangement would therefore give Venezuela access to the economic value of the reserves while placing restrictions on how the assets could be used.

A Rare Agreement Between Government and Opposition

The negotiations are also significant because they involve cooperation between Venezuela’s acting government and members of an opposition-led legislature elected in 2015.

The two sides have been holding talks in Caracas as Venezuela attempts to reshape its political institutions, reopen its economy, attract investment and restructure its enormous international debt.

The proposed gold agreement could become one of the first major concrete outcomes of those negotiations.

What Happens Next?

There are still major legal hurdles.

The Bank of England has said it cannot act until British courts determine who has the legal authority to control the account. That means even if Venezuela’s government and opposition reach a political agreement, the transfer may not happen immediately.

If ultimately approved, however, moving roughly $4 billion in Venezuelan gold from London to New York would bring an extraordinary chapter in the country’s financial and political crisis closer to an end.

For Venezuela, the significance goes beyond the gold itself.

After years in which billions of dollars in Venezuelan assets were effectively inaccessible overseas, the proposed agreement could represent another major step toward the country’s return to the international financial system — while raising important questions about who controls the money, how it will be used and what safeguards will accompany its release.

For millions of Venezuelans at home and across the diaspora, those questions may ultimately matter just as much as the $4 billion sitting inside the vault.