US Greenlights Resale of Venezuelan Oil to Cuba

The U.S. Treasury will allow the resale of Venezuelan oil to Cuba if it benefits the Cuban people and private sector, excluding government or military involvement, easing a blockade that caused severe fuel shortages. Canada pledged $5.8 million in humanitarian aid, while Caribbean leaders warned the crisis could spark regional instability.

The United States Treasury Department announced on Wednesday that it will begin permitting the resale of Venezuelan‑origin oil to Cuba under specific conditions, signaling a measured easing of restrictions that have long affected the island nation. According to the Treasury’s Office of Foreign Assets Control, the new licensing policy will allow transactions only if they directly benefit the Cuban people, including the Cuban private sector, and explicitly exclude any involvement with the Cuban government, military, or intelligence services. This move comes after former U.S. President Donald Trump ordered a blockade on fuel shipments to Cuba in an effort to pressure the Cuban government to implement political reforms and pursue regime change.
The policy shift aims to address the severe energy shortages that have gripped Cuba in recent months. The lack of fuel has led to widespread power outages, forcing hospitals to scale back services and municipal workers to halt essential operations such as waste collection, leaving cities strewn with uncollected garbage. The new approach by the U.S. is intended to provide relief to ordinary Cuban citizens while maintaining economic pressure on the state apparatus.
The fuel crisis in Cuba was exacerbated by the recent U.S.-led seizure of Venezuelan oil exports, a major economic blow to the island, given that Venezuela has traditionally been Cuba’s principal oil supplier. Venezuela, known to hold the world’s largest proven oil reserves, had long provided heavily subsidized oil to Cuba, and disruptions in this supply chain have had immediate humanitarian consequences.
In response to the worsening conditions, the Canadian government announced on Wednesday that it would provide approximately CAD 8 million (around USD 5.8 million) in humanitarian assistance to Cuba. The aid will be channeled through the United Nations World Food Program and UNICEF, focusing on supporting vulnerable communities and addressing urgent food and nutrition needs. Canadian Foreign Affairs Minister Anita Anand emphasized that the assistance reflects Canada’s commitment to the well-being and dignity of the Cuban people, stressing that humanitarian support should reach the civilian population rather than the state machinery.
Meanwhile, U.S. Secretary of State Marco Rubio attended a summit of the Caribbean Community (CARICOM) in Saint Kitts and Nevis, where regional leaders expressed growing concern over the potential repercussions of U.S. policies in the region. Although Rubio did not directly mention Cuba in his remarks, he defended U.S. policy toward Venezuela, reiterating the importance of free and fair elections in the country. Regional leaders, however, highlighted that the humanitarian situation in Cuba could have broader consequences, including increased migration flows and regional instability. Jamaican Prime Minister Andrew Holness warned that a prolonged crisis in Cuba would not remain confined to the island, while Saint Kitts and Nevis Prime Minister Terrance Drew cautioned that a destabilized Cuba could have destabilizing effects across neighboring Caribbean nations.
The new U.S. licensing policy on Venezuelan oil, combined with international humanitarian aid and regional diplomatic attention, reflects an effort to balance pressure on the Cuban government with the urgent need to alleviate suffering among the Cuban population. The measures underscore the complex interplay between geopolitical strategies, economic sanctions, and humanitarian obligations in the region, illustrating the delicate approach required to address both political objectives and the immediate needs of citizens facing a humanitarian emergency.