US Eases Venezuelan Oil Exports to Cuba

- The new policy allows companies to apply for licenses from the U.S. Treasury Department to resell Venezuelan oil to Cuba's private sector for commercial and humanitarian purposes. This marks a partial relaxation of a blockade that has severely restricted fuel access on the island. - This authorization explicitly prohibits any transactions that involve or benefit the Cuban military, intelligence services, or other government institutions. The stated goal is to support the Cuban people and the island's emerging private sector. - For over 25 years, Venezuela was the primary supplier of crude oil and fuel to Cuba, often through barter arrangements involving the exchange of goods and services. This relationship began to formalize with the Comprehensive Cooperation Agreement signed in October 2000. - The recent acute fuel crisis in Cuba was intensified in January 2026 after the U.S. took control of Venezuela's oil exports, halting the long-standing shipments to the island. This led to widespread power outages, transportation disruptions, and food shortages. - The fuel scarcity has had a catastrophic impact on Cuba's small and medium-sized private businesses, with 96.4% reporting "severe" or "catastrophic" effects. The lack of fuel has also hampered basic services like garbage collection and the operation of hospitals. - It remains uncertain whether Cuban private entities will be able to afford the oil purchases, which are now expected to adhere to commercial terms, including bank guarantees and cash payments, rather than the previously favorable subsidized arrangements. - Major oil trading houses, such as Vitol and Trafigura, are currently managing the majority of Venezuela's oil exports, with large volumes being stored at Caribbean terminals for potential resale. - Prior to this policy shift, the U.S. had actively sanctioned companies and vessels involved in transporting Venezuelan oil to Cuba as part of its "maximum pressure" campaign against the former Maduro regime.