A tanker loaded with Russian fuel is set to arrive in Cuba as the United States considers lifting the blockade of the island to let it pass, Bloomberg reported today, citing unnamed sources in the know from Washington.
Reuters reported earlier today that the tanker, Anatoly Kolodkin, had entered Cuba’s exclusive economic zone.
Earlier in the month, the U.S. said Russian tankers were “banned” from delivering oil to Cuba, where the Trump administration is trying to effect regime change by choking off energy supplies.
The U.S. president, in late January, signed an executive order declaring a national emergency and establishing a process to impose tariffs on goods from countries that sell or otherwise provide oil to Cuba. This was motivated by protecting U.S. national security and foreign policy from the Cuban regime’s malign actions and policies, according to the executive order.
The blockade resulted in severe shortages of fuel as the U.S. takeover of Venezuela’s oil industry eliminated Cuba’s biggest oil supplier, and Mexico, despite declarations that it would continue supplying fuel to the island, did not follow with actions, wary of U.S. tariff penalties.
Russia, on the other hand, signaled it would send fuel to Cuba despite the blockade and the tariff threat. The Russian embassy in Cuba said the fuel would be delivered as humanitarian aid.
The first tanker is set to arrive in Cuba this week, carrying 730,000 barrels of crude oil, Bloomberg reported, adding that Cuban government officials were in contact with the U.S. in recent days, making certain concessions such as allowing a fuel delivery for the U.S. embassy.
The second tanker, carrying diesel fuel, is on its way, per Bloomberg, although Marie Traffic data says the vessel is anchored off the Venezuelan coast. The cargo from the first tanker could ease Cuba’s electricity shortages for about a week, given an average daily demand rate from power plants of 100,000 barrels. If Cuba rationed the fuel, however, the Russian cargo could last it for up to a month.
By Irina Slav for Oilprice.com
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