The Trump administration announced it would ease restrictions on fuel shipments to Cuba after weeks of a fuel shortage that has caused an energy crisis on the island.
The Treasury Department released new guidance allowing U.S. companies to apply for licenses for the resale of Venezuelan oil for use in Cuba. The guidance from both the Treasury and Commerce Departments does not allow the resale of oil to the Cuban government or to military-affiliated entities.
“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 Treasury wrote.
In the past month, the Cuban government has relied on its private sector to import fuel to offset the shortage.
Since the U.S. military operation to oust former Venezuelan dictator Nicolas Maduro, the administration has turned its focus on Cuba and has blocked Venezuelan oil from reaching the island. The Trump administration has had plans to sell Venezuelan oil and control the proceeds.
Venezuela was Cuba’s primary oil supplier, so the island has had to look elsewhere for oil, including Mexico. However, the Trump administration threatened to impose tariffs on any other countries that provide Cuba with oil, swaying Mexico to stop its shipments to Cuba.
Mexican President Claudia Sheinbaum announced earlier this month that her country has no plans to resume oil shipments to Cuba.
“It’s currently on hold, and we are seeking to avoid any negative impact on Mexico and, as always, to find the best diplomatic solution for Cuba to receive the fuel,” Sheinbaum said at the time.
Venezuela was Cuba’s largest oil supplier last year, providing 26,500 barrels per day, followed by Mexico, with some 5,000 barrels per day.
INSIDE THE TRUMP ADMINISTRATION’S EFFORTS TO PRESSURE CUBA’S COMMUNIST REGIME OUT
The pressure from the Trump administration is part of an effort to push the Cuban communist regime out of power.
Yet the fuel shortage in Cuba has led to blackouts across the country, affecting food prices and transportation. It was also reported that trash has begun to pile up in Havana as trash trucks lack fuel to operate.
