U.S. Allows Limited Resales of Venezuelan Oil to Benefit Cuban Citizens

The U.S. Treasury Department’s Office of Foreign Assets Control announced a narrow licensing policy on Feb. 25-26 to permit certain resales of Venezuelan-origin oil destined for Cuba, provided shipments are used by Cuban citizens and private companies rather than government or military entities. OFAC said it “would implement a favorable licensing policy towards specific license applications seeking authorization for the resale of Venezuelan origin oil for use in Cuba,” and framed approvals under the Support for the Cuban People license exception as targeted commercial and humanitarian measures.

Treasury’s guidance explicitly excludes transactions that would “involve, or be for the benefit of, any persons or entities associated with the Cuban armed forces, intelligence services or other government institutions,” including those on the U.S. Department of State’s Cuba Restricted List. The department also reminded applicants that exports or re-exports of U.S.-origin petroleum remain primarily regulated by the Commerce Department, creating a separate approval path for any U.S.-origin product.

The change arrives amid visible shortages on the island. A loaded oil tanker docked in Matanzas Bay on Feb. 16 as Russian fuel deliveries continued, and images from recent reporting showed piles of trash accumulating because collectors lacked fuel to operate. Treasury and OFAC framed the licensing shift as intended to “support the Cuban people, including the Cuban private sector (e.g., exports for commercial and humanitarian use in Cuba),” language meant to tie approvals to specific end uses and beneficiaries.

Market players and logistics are already in motion. Caribbean Council analysis noted that companies licensed to trade Venezuelan oil could be authorised to resell to non-government entities in Cuba, and that international traders such as Vitol and Trafigura reportedly obtained licenses in January to resell Venezuelan crude. Cuban authorities had moved in November 2025 to permit private import of small quantities of oil in containerized tanks, and Caribbean Council said those November permissions and subsequent meetings with entrepreneurs set a framework for private-sector self-consumption and imports.

Operational questions remain. OFAC said it will adjudicate license applications on a case-by-case basis and that certain exports under the Support for the Cuban People exception “do not require separate authorization from [OFAC] provided the applicable terms are met,” but the guidance does not detail verification mechanisms to prevent diversion to state entities. Caribbean Council noted the Cuban government had not commented on the U.S. announcement as of its March 2 analysis.

Some background claims in coverage require further confirmation. One report stated shipments stopped after the United States captured Nicolás Maduro on Jan. 3 and took control of Caracas’ energy industry; that line appears in UPI’s reporting and should be treated as that outlet’s claim. Social posts have also circulated figures and market claims, including an assertion that Cuba produces only 40 percent of needed fuel and that trading houses have stockpiled millions of barrels in Caribbean storage, statements flagged in reporting as sourced to social media.

If OFAC follows through on a favorable licensing record and traders such as Vitol or Trafigura move fuel into ISO tanks or other containers bound for private customers, the narrow policy could create measurable relief for Cuban households and small businesses. Treasury’s change leaves the practical work to license approvals, Commerce Department vetting of U.S.-origin product, and on-the-ground verification that deliveries reach the private-sector recipients named in applications.