(Bloomberg) -- A Portuguese court ordered Novo Banco SA to reimburse around €1.35 billion ($1.48 billion) to nine entities controlled by Venezuela’s socialist government. 

According to the ruling, dated July 31 but published Aug. 8, the bank must transfer the funds to accounts held by Venezuela’s state oil company PDVSA, Bandes bank and other state entities. 

The decision brings to an end a five-year conflict that was aggravated by Portugal’s decision to recognize a parallel Venezuelan government set up in 2019 by opposition lawmaker Juan Guaidó, even as President Nicolás Maduro retained his grip on power.   

In a statement earlier today, Novo Banco said the court’s decision “was expected” and that the bank had already transferred all Venezuelan state related funds into an account belonging to the Portuguese courts. The lender did not say if and when it would transfer the funds. A spokesman for Novo Banco said the bank was analyzing the court ruling with its lawyers.

When Guaidó failed to achieve his goal of ousting Maduro, many allies had second thoughts. Portugal sent an Ambassador back to Caracas last year. 

The Maduro government has made great efforts to recover its overseas assets, including going to court in the UK to recover roughly $2 billion in gold stored in the Bank of England. London has also stopped recognizing Guaidó as Venezuela’s legitimate leader. The case is ongoing. 

READ: Venezuela’s $2 Billion UK Gold Case Sent Back to Lower Court

It’s still unclear whether the Venezuela opposition will appeal the ruling, or whether Maduro will be able to access the funds given the US sanctions regime.

This is “a judicial victory that allows us to set a precedent for the legal fight Venezuela has against sanctions and blockade,” William Castillo, a Maduro official in charge of fighting international sanctions, said on state TV. The transfer of the funds could be delayed because Bandes is sanctioned, he said. 

The money held by Novo Banco represents about 30% of Venezuela’s international reserves, excluding special drawing rights with the International Monetary Fund which the country can’t currently access.

--With assistance from Henrique Almeida.

(Updates starting with Novo Banco statement starting in the 4th paragraph)

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