The US government's announcement that it will allow the resale of Venezuelan oil to Cuba could bring some relief to the country, which has been facing fuel shortages after the US imposed an oil blockade on Cuba. This comes at a time when tensions between the two countries have reached a peak.
According to Redaksiya, the US Department of the Treasury announced on Wednesday that it will permit the resale of Venezuelan oil in Cuba for "commercial and humanitarian purposes." This decision comes at a time when the small island nation is facing one of the worst fuel crises in decades. This move by the US follows alarm bells raised by leaders of Caribbean nations regarding the dire situation in Cuba. Jamaican Prime Minister Andrew Holness called on Washington to ease pressure during a regional meeting of Caribbean Community (CARICOM) countries, which was attended by US Secretary of State and Cuban-American Marco Rubio.
The reason for the US blocking oil supplies to Cuba is the US President Donald Trump administration's desire to achieve regime change in Cuba. In January, Venezuelan President Nicolas Maduro's alleged kidnapping by US forces and facing drug and arms charges in a New York court led the Donald Trump administration to seize control of Caracas's oil and halt exports to Havana. The US imposed a blockade on Cuba, citing the country's "policies, practices, and actions," by applying new trade tariffs to countries selling oil to Cuba. This move has weakened Cuba's economy, made the country dependent on imports, and caused inflation, food, and energy shortages. With Donald Trump's latest oil embargo, the US has added a severe energy crisis to the situation. Widespread power outages lasting up to 20 hours, affecting hospitals, businesses, and households, have been recorded in Cuba.
Cuban officials have reacted sharply to this move by the US. Cuban President Miguel Diaz-Canel accused the US of imposing collective punishment on the country. At the same time, he accused the US of being in contact with armed individuals entering the country's waters. A group of United Nations experts called the US directive illegal and stated that the claim of Havana financing terrorism is "unreliable." Other countries are also trying to help. Mexico has sent humanitarian aid to Havana twice, from mid-February to this week, while Russia is considering the possibility of sending fuel to Cuba. Canada pledged food aid worth 8 million Canadian dollars on Wednesday.
Washington announced on Wednesday that it would issue special licenses to companies to resell Venezuelan oil to Cuba, in "solidarity" with the Cuban people. However, "individuals or entities associated with Cuban military, intelligence services, or other government agencies" will not be able to obtain oil sales licenses. It is unclear whether the new decision will allow Havana to purchase Venezuelan oil at subsidized prices as before. Experts say that if this does not happen, the situation for Cuba may not improve significantly.