BSS/AFP) - Britain said Tuesday it was upgrading diplomatic relations with Venezuela, hailing the country`s attempts at political transition and paving the way for the appointment of an ambassador in Caracas.

The announcement comes as Venezuelan parties negotiate the recovery of frozen gold reserves from the United Kingdom, which withheld them when Nicolas Maduro was in power.

Various countries have re-established diplomatic relations with the South American country since US forces ousted president Nicolas Maduro in January.

"The UK and Venezuela have agreed our intention to upgrade our representation to Ambassador," Chris Elmore, minister for Latin America, wrote in a parliamentary statement.

Elmore said recent events in Venezuela had created an "important opportunity" for democracy.

Since Maduro`s capture, interim leader Delcy Rodriguez has effectively done Washington`s bidding, opening up her country`s mining, electricity and oil sectors to foreign and private capital.

Her government also released a statement announcing improved relations with Britain.

Britain supported US-backed transition talks between the interim government and parts of the opposition, Elmore said.

"The UK considers that this moment calls for pragmatic engagement to help advance a credible transition and to encourage further reforms," he said.

US President Donald Trump recently dismissed the notion that Venezuela would hold elections in the near future, with Rodriguez echoing his comments.

Oliver Blanco, Venezuela`s deputy foreign minister for North America and Europe, welcomed Tuesday`s decision, as well as the chance to recover "resources that rightfully belong to Venezuelans."

He was referring to the reserves frozen in the Bank of England, which opposition figure Juan Guaido asked London to hold when Maduro was president.

In August, the transition talks agreed to work toward securing their release.

Delegates say they plan to use the reserves worth $1.9 billion to aid victims of the devastating June 24 earthquakes that killed over 6,500 people.