BRITAIN “unequivocally recognises” the government of Venezuelan President Nicolas Maduro, despite considering his position to be “illegitimate,” the High Court heard today.

The Venezuela Central Bank (BCV) is battling for the release of $1 billion (£800 million) of gold bullion held in the Bank of England (BoE), which it wants to sell to help tackle the country’s coronavirus crisis.

If successful, the BCV will transfer the funds to the United Nations Development Programme (UNDP) in order to buy “healthcare equipment, medicines and basic foodstuffs” to address the Covid-19 emergency.

But the BoE is refusing to hand over the gold, claiming that it is “caught in the middle” of rival claims, between BCV boards appointed by Mr Maduro and an “ad hoc” board appointed by opposition leader Juan Guaido.

Mr Guaido has asked the BoE not to “act on instructions from the Maduro board.”

At a remote hearing to decide who the British government formally recognises as the president of Venezuela today, the lawyer representing the “Maduro board” of BCV, Nick Vineall, said: “There is one, and only one, functioning government in Venezuela: the Maduro government.”

Mr Vineall said that though the British government “does not approve of the Maduro government” it “continues to recognise the Maduro government” by sending an ambassador to Venezuela and receiving Mr Maduro’s representative.

He added: “The government made no statements derecognising the Maduro government, and continued to maintain full and normal reciprocal diplomatic relations with the Maduro government.

“That position continues up to today, and the government continues to have no diplomatic relations with Mr Guaido or his representatives.”

Venezuela Solidarity Campaign (VSC) secretary Francisco Dominguez welcomed the claim, saying that the government’s formal recognition of Mr Guaido as interim president was “untenable, legally and morally.”

He told the Star: “Given the consistent undemocratic and criminal behaviour of Guaido, the correct position ought to be to formally withdraw any kind of Guaido’s recognition [that] the UK government irresponsibly extended to him.

“Another step in the right direction would be to ensure the BoE returns [the gold] to the Venezuelan government ‘unequivocally recognised’ [by the UK].”

Andrew Fulton, representing the Guaido board of BCV, said the case was a battle “for control of valuable Venezuelan assets between two rival presidents, only one of whom is recognised by the government.”

The hearing, which is being conducted remotely via Skype, will take place over four days. It is expected that the court will reserve its judgment.