US greenlights resale of Venezuelan oil to Cuba

"The US Treasury's Office of Foreign Assets Control said it 'would implement a favorable licensing policy towards specific license applications seeking authorization for the resale of Venezuelan origin oil for use in Cuba.' The Treasury said this 'favorable licensing policy is directed towards transactions that support the Cuban people, including the Cuban private sector (e.g., exports for commercial and humanitarian use in Cuba).'"

"The easing of the US blockade comes as life on the island has slowed to a halt due to a lack of fuel. Power outages in Cuba are commonplace, with hospitals dialing back services and trash collectors pausing their work, causing piles of rubbish to pile up in Cuban cities."

"The US military ouster and kidnapping of leftist Venezuelan leader Nicolas Maduro last month was a huge economic blow for Cuba, as Venezuela is a key supplier of oil to Cuba. Venezuela is thought to have the largest oil reserves on the planet."

The US Treasury Department announced a policy shift allowing the resale of Venezuelan oil to Cuba under specific conditions. Transactions supporting the Cuban private sector, commercial activities, and humanitarian use are now eligible for favorable licensing. However, transactions involving the Cuban military, government, or intelligence services remain prohibited. This easing follows President Trump's initial blockade order intended to force regime change. The policy change comes as Cuba faces severe fuel shortages causing widespread power outages, hospital service reductions, and waste collection halts. Venezuela's removal of leader Nicolas Maduro significantly impacted Cuba's oil supply, as Venezuela remains a critical energy source for the island.

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