The US allows Venezuelan oil exports to Cuba to support the private sector
In a significant move, the United States announced Wednesday it was easing restrictions on Venezuelan oil exports, allowing them to be directed to Cuba's private sector, in response to the island's dire humanitarian and energy crisis. The U.S. Treasury Department explained in an official notice that the measure aims to directly support the Cuban people and address urgent commercial and humanitarian needs.
Historical background of sanctions and the energy crisis
This move comes within the context of a complex web of US sanctions imposed on both Venezuela and Cuba. For decades, Washington has maintained a strict economic embargo on Cuba, while in recent years it has tightened sanctions on Venezuela to pressure the government of President Nicolás Maduro. Venezuela, a close ally of Cuba, was the island's main supplier of oil at preferential prices under agreements such as Petrocaribe, but the collapse of Venezuela's oil sector under the weight of the economic crisis and US sanctions has led to a near-complete halt in these supplies, exacerbating Cuba's unprecedented energy crisis.
The impact of the crisis on life in Cuba
The Cuban people suffer from prolonged and frequent power outages and severe fuel shortages that disrupt transportation, essential services, and agricultural production. These difficult living conditions have led to growing public discontent. The new US decision aims to alleviate this suffering by allowing the Cuban private sector, which has begun to grow slowly in recent years, to import Venezuelan oil. This could help power private generators and small businesses, offering a limited improvement in living conditions.
The importance and potential impacts of the decision
Domestically in Cuba, this measure is expected to provide a boost to the struggling economy and support private-sector entrepreneurs, which Washington views as a way to support the people independently of the government. For Venezuela, the decision represents a small window for exporting its crude oil, albeit limited and restricted by humanitarian considerations. Internationally, this move can be interpreted as a tactical shift in US policy, with the Biden administration seeking to balance political pressure on targeted governments with addressing the humanitarian consequences of its policies, and perhaps curbing the drivers of illegal migration stemming from the region's economic decline.
