Here's a new twist in the long-running saga of U.S. sanctions, Venezuelan oil, and Cuba's economy: the Treasury Department has decided to let companies ask for permission to do something they couldn't before. Starting Wednesday, firms can apply for licenses to resell Venezuelan crude to one specific group in Cuba: the private sector.
Think of it as opening a very narrow, heavily monitored side door. The official guidance is clear: any deal has to "support the Cuban people, including the private sector." If a transaction involves or benefits the Cuban military, intelligence services, or other government entities, it's a no-go. The idea seems to be providing economic relief to ordinary Cubans and private businesses while continuing to squeeze the state apparatus.
This matters because Cuba is running on fumes. For over 25 years, Venezuela was Cuba's main fuel lifeline through a special bilateral pact—essentially trading oil for Cuban doctors, teachers, and other services. That all changed in January when the U.S. assumed control of Venezuela's oil exports following the capture of former President Nicolás Maduro. The spigot to Cuba was turned off, deepening an energy crisis that has meant blackouts, scarce gasoline, and grounded planes.
So who's moving all this Venezuelan oil now? Largely big international trading houses. Dutch-based Vitol and Singapore-based Trafigura are handling the bulk of exports, sending millions of barrels to the U.S., Europe, and India. They also have millions more sitting in storage at Caribbean terminals, waiting for buyers. U.S. Energy Secretary Chris Wright recently noted that Venezuelan oil sales have topped $1 billion since the U.S. took control, with the revenue flowing directly into a U.S. Treasury account from a U.S.-controlled bank in Qatar.
The policy shift comes against a backdrop of serious friction. Earlier this month, former President Donald Trump called Cuba a "failed nation" amid what he described as an oil blockade, warning it's "really a humanitarian threat." Back in January, he also signed an executive order targeting countries that supply oil to the island. Cuban President Miguel Díaz-Canel blasted that move as an attempt to "suffocate" Cuba's economy.
And the tensions aren't just rhetorical. The Treasury's announcement followed an incident Wednesday where Cuban authorities said a Florida-registered speedboat exchanged gunfire with border guards in Cuban waters, leaving four dead. Secretary of State Marco Rubio said the U.S. would "respond appropriately" as more information comes in.
It's a complex picture. On one hand, the U.S. is maintaining maximum pressure on the Cuban government. On the other, it's creating a potential loophole for the private sector. For traders with the right licenses, it might open a new market. For Cubans struggling with fuel shortages, it might offer some relief. But it's a carefully calibrated relief, delivered one approved transaction at a time.
