US Allows Resale of Venezuelan Oil to Cuba Amid Energy Crisis

The U.S. Treasury Department greenlit the resale of Venezuelan oil licenses to Cuba's private sector, aiming to address the island's severe fuel shortages. This decision follows the US takeover of Venezuela's oil exports, which disrupted its supply to Cuba, exacerbating the country's energy crisis.

Venezuela, Cuba's longstanding oil supplier, ceased shipments following increased US sanctions, including controlling sale proceeds. The US now mandates that transactions support Cuba's private sector while excluding military or government beneficiaries to ensure aid reaches the needy.

Despite the policy shift, Cuba's economic constraints hinder its ability to purchase fuel, intensifying its power generation and mobility issues. The Treasury highlighted that fuel import licenses don't need a U.S. entity, allowing greater flexibility for Cuban importers to manage energy needs.