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US Eases Cuba Oil Import Ban on Venezuela

Financial Times Companies •
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The United States has eased restrictions on Cuba's ability to import Venezuelan oil, marking a significant shift in sanctions policy. The Treasury Department announced that private Cuban companies can now engage in oil transactions with Venezuela, a move that could help alleviate energy shortages on the island. This relaxation comes as Cuba faces severe fuel scarcity that has crippled transportation and industrial production.

Under the new rules, private Cuban businesses gain limited access to Venezuelan crude oil supplies, though transactions involving Cuba's military or government entities remain prohibited. The Biden administration's decision reflects growing concerns about Cuba's economic crisis and its potential to fuel migration to the United States. Energy experts note that Venezuela's oil industry, once a powerhouse, has been severely degraded by years of mismanagement and sanctions, limiting the volume of oil available for export.

The policy change represents a calculated risk by Washington, balancing humanitarian concerns against continued pressure on Cuba's communist government. While private sector access to Venezuelan oil could provide some economic relief, analysts question whether Venezuela can reliably supply Cuba given its own production challenges. The move signals a nuanced approach to sanctions that targets state entities while potentially benefiting ordinary Cubans through improved energy access.