US Eases Sanctions on Venezuelan Oil to Cuba
The United States has eased restrictions on Venezuelan oil exports to Cuba in a significant policy shift. The move is expected to provide Cuba with vital energy supplies and strengthen Venezuela's revenue streams. This signals a potential softening of the U.S. stance toward both Havana and Caracas amid regional realignments.
This policy shift arrives after a U.S. naval blockade and the capture of Venezuelan President Nicolás Maduro in January 2026, which completely halted Venezuelan oil shipments to Cuba. The move triggered a severe energy crisis on the island, leading to widespread blackouts and fuel shortages. For over two decades, Venezuela had been Cuba's primary source of oil. On February 25, 2026, the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) announced a "favorable licensing policy" for companies to resell Venezuelan oil to Cuba. This is not a blanket authorization but a case-by-case approval process for specific licenses. Trading houses like Vitol and Trafigura are currently managing the bulk of Venezuela's oil exports. The new guidance explicitly states that transactions must support the Cuban people and the private sector. Sales that benefit the Cuban military, intelligence services, or other government institutions are strictly prohibited and will not be approved under this policy. This distinction is a key element of the eased restrictions. This decision follows a recent U.S. Supreme Court ruling that limited the President's authority to impose tariffs on countries supplying oil to Cuba. Previously, the Trump administration had threatened tariffs against Cuba's oil suppliers, which led Mexico to halt its deliveries in January, exacerbating the island's energy crisis. It remains uncertain whether Cuban private entities can afford to purchase oil at spot market prices, as they have historically struggled to pay for fuel imports. The success of this new policy will hinge on the financial capacity of Cuba's private sector to engage in these transactions. U.S. Secretary of State Marco Rubio has stated that the humanitarian crisis in Cuba is a result of the Cuban government's policies, not the U.S. blockade. He has also warned that the eased restrictions could be revoked if any oil is found to be diverted to the Cuban government or military. The energy crisis has had a devastating impact on daily life in Cuba, affecting everything from electricity generation, which is over 80% dependent on oil, to transportation and food distribution. The acute shortages have forced many Cubans to cook with wood and charcoal.
