Washington will allow the sale of Venezuela-origin crude and refined products to Cuba via authorized intermediaries, US sanctions enforcers said Wednesday.
The US Department of Treasury's sanctions enforcement arm, the Office of Foreign Assets Control (OFAC), said it would approve applications from third parties looking to resell Venezuelan crude and products to Cuba, citing "the United States' support and solidarity for the Cuban people". The sales will have to conform to the same conditions as the US-authorized transactions with Venezuelan state-owned PdV, including a requirement to deposit sales revenue into a US-controlled bank account.
But OFAC clarified that it could issue Cuba resale authorizations to non-US companies as well. OFAC limits direct purchases from PdV to "established US entities", meaning companies with established presence in the US on or before 29 January 2025.
Cuba is facing drastically reduced access to crude and refined products following the US takeover of Venezuelan crude sales last month and pressure from Washington on Mexico to curb its state-owned Pemex's supply to the island.
The Wednesday guidance from OFAC in practice would allow shipments of refined products only for select "humanitarian" purposes, as it bars sales to companies associated with the Cuban military, intelligence services or other government institutions. It is not clear if jet fuel sales to airports would fall into the allowed category.
Cuba is also allowed to import crude and refined products from the US, subject to the same constraints on buyers. Such sales require authorization from the US Department of Commerce, rather than OFAC.
