Havana – After months of a crippling oil blockade, Cuba may soon see some relief as the United States announced Wednesday it will begin authorizing companies to resell Venezuelan oil for “commercial and humanitarian use.” The move comes amid a deepening crisis on the island and escalating tensions between Washington and Havana.
The US Department of the Treasury will issue licenses allowing the resale of Venezuelan oil, a critical lifeline for Cuba, which has been facing one of its worst fuel crises in decades. Venezuela has historically been Cuba’s largest oil provider, supplying around 35,000 barrels per day under a barter agreement dating back to 2000, in exchange for Cuban support in education, healthcare, and security services.
However, that flow was abruptly halted in January when US forces abducted Venezuelan President Nicolas Maduro, who is now facing drug and weapons charges in New York. The Trump administration subsequently took control of Caracas’s oil exports, effectively cutting off Havana’s supply.
The US policy shift this week followed mounting pressure from Caribbean leaders, who warned of the potential for wider instability if the situation in Cuba continues to deteriorate. At a regional meeting of the Caribbean Community (CARICOM) on Wednesday, Jamaica’s Prime Minister Andrew Holness urged Washington to ease the pressure.
“Today, many Cubans are facing serious economic hardship, energy shortages, and growing humanitarian challenges,” Holness said. “A prolonged crisis in Cuba will not remain there. It can impact migration, security and economic stability across the Caribbean, including Jamaica.”
Cuba’s state-dominated economy has been struggling under a US embargo since 1962. The recent oil blockade has exacerbated existing problems, leading to widespread power blackouts – some lasting up to 20 hours – impacting hospitals, businesses, and households. Surgeries have been suspended, schools have closed, and waste collection has been disrupted, leading to mounting piles of garbage in the streets.
Four UN special rapporteurs warned earlier this month that the situation is contributing to a severe public health problem and could lead to a “severe humanitarian” crisis. Cuba has lost 90 percent of its fuel supply, and analysts warn of a potential total blackout by the end of February.
The US has also reportedly intercepted fuel tankers in Caribbean waters transferring oil to Cuba, and has increased its naval presence in the region.
While the US has announced $6 million in humanitarian aid to Cuba, to be distributed by the Catholic Church, the new licenses for Venezuelan oil resale come with restrictions. Companies or entities linked to the Cuban military, intelligence services, or other government institutions will be barred from obtaining licenses. Transactions must support “exports for commercial and humanitarian use.”
It remains unclear whether the new order will allow Cuba to continue purchasing Venezuelan oil at the previously subsidized rate. Experts caution that without a significant oil supply or a broader easing of US pressure, Cuba’s economic recovery will be unlikely. “Without significant oil imports or a relenting of US pressure, Cuba’s economy is unlikely to recover, and the degradation of conditions is likely to accelerate,” said Ignacio Seni, a risk analyst with Crisis 24.
Cuban authorities have accused the US of collective punishment and, following an incident where four Americans of Cuban origin were killed in a confrontation with Cuban border agents, have also alleged US links to armed individuals entering Cuban waters. Havana maintains it is open to dialogue with Washington but vows to defend its sovereignty.
