U.S. to Allow Venezuelan Oil Sales to Cuba as Caribbean Leaders Express Concern

The United States government has announced a change in its Cuba policy by allowing the resale of Venezuelan oil to Cuba’s private sector, a move aimed at addressing the island’s worsening fuel crisis that has raised alarm among leaders across the Caribbean region.

Under the updated guidance issued by the U.S. Treasury Department, companies can apply for licences to resell Venezuelan crude and refined products to Cuba, with strict conditions that the transactions must benefit the Cuban people and the private sector and must not directly assist the Cuban government or military.

The decision comes as Cuba experiences severe energy shortages, with fuel supplies having dwindled after disruptions in shipments from Venezuela and Mexico. These shortages have contributed to extended power outages and strained basic services, prompting concern among neighbouring countries that the crisis could spill over into broader economic and social instability.

At a Caribbean Community (CARICOM) meeting in Saint Kitts and Nevis, U.S. Secretary of State Marco Rubio urged regional cooperation on security issues, while Caribbean leaders warned that Cuba’s destabilisation could have wide-ranging effects across the region. They also called for constructive dialogue between Washington and Havana to address both the humanitarian situation and underlying political strains.

The policy shift reflects a pragmatic response to humanitarian distress in Cuba, even as underlying diplomatic tensions remain high. Cuban authorities and regional governments will be watching closely how the new licensing framework is implemented and whether it can help relieve urgent fuel needs without undermining long-standing political disputes.