The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) announced a significant policy update on Wednesday, February 25, 2026, permitting the resale of Venezuelan-origin oil to Cuba's non-governmental sectors under new licensing frameworks. This marks the first relaxation of energy trade restrictions between the two nations since Washington intensified sanctions earlier this year.
OFAC confirmed it will prioritize license applications supporting commercial and humanitarian oil exports to Cuba's private enterprises, while maintaining strict prohibitions on transactions involving Cuban military or government-linked entities. The move comes seven weeks after U.S. forces assumed control of Venezuela's oil exports following January's military intervention that displaced President Nicolás Maduro.
Analysts suggest this policy carveout aims to alleviate Cuba's energy shortages while maintaining pressure on Havana's leadership. The Treasury Department emphasized that all approved transactions must demonstrate clear separation from Cuban state institutions.
This development follows President Donald Trump's January 29 executive order threatening tariffs against countries facilitating oil shipments to Cuba – a measure that initially paralyzed regional energy markets. The new licensing approach could reshape Caribbean energy dynamics as global markets adapt to evolving U.S. sanctions regimes.
