The Trump administration plans to allow energy companies to sell fuel to private Cuban businesses while maintaining a strict blockade on the Cuban government. The policy shift aims to alleviate a worsening humanitarian and energy crisis on the island by distinguishing between the Cuban people and the regime.
The U.S. Department of the Treasury and U.S. Department of Commerce are set to issue new guidance clarifying that Washington permits fuel exports to private Cuban companies without requiring specific licenses.
Further, the Trump administration will place no volume restrictions on these private oil exports provided the private sector is the ultimate beneficiary. The broader energy ban will, however, remain in effect for the Cuban government. Trump has described the Cuban government as a “failing” entity, with restrictions on energy supplies a deliberate tactic to force regime change.
Last month, President Donald Trump signed an executive order declaring a national emergency regarding Cuba, authorizing the U.S. to impose additional tariffs on any country that directly or indirectly provides oil to the Cuban government. The policy aims to halt shipments from Cuba’s remaining suppliers, especially Mexico, which has been a key provider of oil to the island after Venezuelan shipments were cut off following the U.S. capture of Venezuelan leader Nicolás Maduro.
New executive orders have declared Cuba a “national emergency,” aimed at halting all hard currency flows. This includes restricting remittances and discouraging international tourism by penalizing visitors who later wish to travel to the United States. Trump’s “maximum pressure” strategy is intended to force regime change in Cuba by the end of 2026.
As widely expected, the measures have resulted in severe fuel shortages, leading to widespread power outages and disruptions to essential services including fuel for hospitals and garbage collection, as well as grounding of international flights and public transportation. The measures have been criticized internationally, with the United Nations and various officials expressing concern over the humanitarian implications, describing it as coercive and a form of collective punishment.
By Alex Kimani for Oilprice.com
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