Following nearly two weeks of negotiations mediated by the United States, Venezuela's government and the opposition have reached a significant agreement: they are jointly demanding that the Bank of England return gold reserves valued at $4 billion.

Since 2018, the United Kingdom has refused to recognize Venezuela's socialist revolutionary government, effectively preventing the nation from accessing approximately 31 tonnes of gold stored in the Bank of England's vaults. This reserve has been entangled in a protracted legal dispute over its rightful ownership.

In a joint statement released on Wednesday evening, the government and opposition stated that a recent earthquake in June, which has killed over 6,000 people, necessitates the use of these funds for reconstruction efforts. "Both sides will focus their efforts on recovering Venezuela's international reserve assets held at the Bank of England," the statement said.

Decades of mismanagement, corruption, and US sanctions had already plunged Venezuela's economy into chaos, and the earthquake's impact has further devastated the nation. Venezuela's central bank reported on Wednesday that, due to the disaster, the monthly inflation rate surged to 19.9% in July, up from 13.8% in June. Economists estimate the country's annualized inflation rate is around 575%.

Interim President Delcy Rodriguez stated last month that she had written to King Charles III, requesting that the UK release the gold held in its vaults. An opposition figure involved in the negotiations said a transparent oversight mechanism would be established for the gold recovery process "to prevent the government from misappropriating the assets." "We are under no illusions," the source said. "We know that the interim government led by Delcy Rodriguez is not a democratic reformer."

The UK Foreign Office stated that the British government is not a party to the legal case determining control of the gold. In response to a request for comment, the UK said: "The UK's consistent position is to support a democratic transition of power in Venezuela that reflects the will of its people."

The Bank of England declined to comment. It has been awaiting a judicial ruling on the ownership of the Venezuelan gold before releasing it. The US has partially suspended sanctions on Venezuela and is working closely with Rodriguez, a former vice president under Nicolas Maduro, to open the country's abundant natural resources to foreign investment.

In the joint statement, both sides also agreed to initiate consultations on reforming Venezuela's judicial system.