BY COMFORT OGBONNA
The U.S. Department of the Treasury said Wednesday it would authorize companies to seek licenses to resell Venezuelan oil to Cuba’s private sector, according to updated guidance posted on its website. The move could offer limited relief to the island’s deepening fuel shortage, which has strained electricity generation, transportation, aviation and household energy use.
Since Washington assumed control over Venezuela’s oil exports in January following the capture of Venezuelan leader Nicolas Maduro, crude shipments from the South American country to Cuba have stopped. The halt has intensified an already severe energy crisis in the communist-run nation, where rolling blackouts and fuel scarcities have become increasingly common.
For more than 25 years, Venezuela had served as Cuba’s principal supplier of crude and refined products under a bilateral arrangement largely structured around the exchange of goods and services. In recent months, Mexico which had emerged as an alternative source also suspended deliveries after a fuel cargo reached Havana in January, according to shipping data, further tightening supplies.
Treasury guidance specifies that any authorized transactions must “support the Cuban people, including the private sector.” Deals that involve or benefit the Cuban military or other government-controlled entities will not be covered. The language underscores Washington’s effort to channel relief through private businesses rather than state institutions.
Major trading houses including Vitol and Trafigura are now managing a substantial share of Venezuela’s oil exports. Millions of barrels have been shipped to the United States, Europe and India, while additional volumes are stored at Caribbean terminals awaiting resale.
U.S. President Donald Trump has said that countries previously receiving Venezuelan crude under swap agreements, debt repayments or preferential arrangements must now pay market prices. Among those allies are China and Cuba, both of which had benefited from long-standing energy ties with Caracas.
Speaking from Basseterre in St. Kitts and Nevis, U.S. Secretary of State Marco Rubio said Cuba’s humanitarian difficulties stem from domestic government policies rather than U.S. measures targeting Venezuela’s oil trade prior to Maduro’s capture. Rubio argued that Washington is prepared to assist the Cuban people but that political barriers within the island stand in the way.
Even with the new licensing pathway, questions remain about Cuba’s ability to finance oil purchases. The country has struggled in recent years to pay for spot market imports, raising doubts about whether private firms can secure sufficient funding for sustained fuel buying at market rates.
The Bureau of Industry and Security had previously indicated that exports and re-exports of U.S. gas and petroleum products to eligible Cuban private-sector entities would be permitted. Earlier this month, Cuba’s government announced it would allow micro, small and medium-sized enterprises to import fuel in an effort to alleviate the crisis. A U.S. administration official said the Treasury’s latest action is intended to demonstrate that private importers can access supplies independently of the state.
Fuel distribution and power generation in Cuba remain controlled by state companies, though consumers include private airlines and other non-state businesses that rely on steady energy supplies to operate.
Treasury officials also clarified that applicants for licenses do not necessarily need an established U.S. entity and that certain restrictions attached to a broad January authorization governing Venezuelan oil exports would not apply to Cuba-related transactions.
U.S. pressure on both Venezuela and Cuba has left several fuel cargoes undelivered since December, compounding the island’s power shortages. One Cuba-bound vessel that loaded Venezuelan gasoline in early February at a port operated by state oil firm PDVSA remains anchored in Venezuelan waters awaiting clearance. No oil shipments have departed Venezuela since January without authorization from Washington, which now oversees the country’s export flows and sales proceeds.
Separately, ship-tracking data showed that the Hong Kong-flagged tanker Sea Horse, believed to be carrying fuel likely destined for Cuba, halted navigation in the Atlantic Ocean. The vessel is listed in maritime databases as owned and managed by Hongkong Hangda Shipping Ltd. Neither the company nor PDVSA immediately commented.
In an unrelated maritime incident, Cuban forces killed four people and wounded six aboard a Florida-registered speedboat that entered Cuban waters on Wednesday. Rubio told reporters the episode was not a U.S. operation and that no U.S. government personnel were involved.
As Washington reshapes control over Venezuelan oil exports and tightens conditions on transactions with Havana, Cuba’s energy outlook remains uncertain. While the new licensing policy may open a narrow channel for fuel flows to the private sector, broader economic and political constraints could limit its immediate impact.
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