The U.S. Treasury Department has announced that it will permit companies to apply for licenses to resell Venezuelan oil to Cuba, potentially alleviating the severe fuel shortages affecting the island nation.
According to Reuters, this decision aims to support the Cuban populace, particularly the private sector, by allowing exports for both commercial and humanitarian purposes. However, the new policy explicitly excludes any agreements that would benefit the Cuban military or other state institutions.
Applicants for these licenses are not required to have a registered U.S. company, and the restrictions outlined in a January license concerning the general export of Venezuelan oil will not apply to Cuba.
Previously, the U.S. Bureau of Industry and Security issued guidance allowing the export and re-export of American petroleum products to Cuba’s private sector. The Cuban government currently manages fuel distribution and electricity supply through state-owned enterprises, although private airlines and other businesses also consume fuel.
For over 25 years, Venezuela has been a primary supplier of oil and fuel to Cuba, its political ally. However, U.S. control over Venezuelan oil exports, following the U.S. government’s actions against Venezuelan leader Nicolás Maduro, has halted these shipments. Mexico, which had served as an alternative supplier, also ceased shipments to Cuba in January 2026.
Since then, no oil shipments have left Venezuela without U.S. authorization, which regulates both exports and revenue under an agreement with the interim presidency of Delcy Rodríguez.
Former President Donald Trump previously stated that Venezuela’s allies, who received oil through barter agreements and debt settlements, must now pay market prices.
Major trading firms like Vitol and Trafigura handle a significant portion of Venezuela’s oil exports, sending millions of barrels to the U.S., Europe, and India.
Despite the new policy, it remains uncertain whether Cuba can afford to purchase oil at market rates, given the country’s recent struggles to pay for fuel imports.
On February 25, U.S. Secretary of State Marco Rubio visited the Caribbean to discuss the situation with regional leaders, warning that the humanitarian crisis in Cuba could destabilize the area. U.S. pressure on both Venezuela and Cuba has contributed to the failure of several fuel shipments since December, exacerbating the island’s electricity and fuel supply issues.
The U.S. Treasury's new policy allows companies to resell Venezuelan oil to Cuba, aiming to ease fuel shortages. However, challenges remain regarding Cuba's ability to afford market prices amidst ongoing economic struggles.
Source: Reuters