U.S. Eyes 'Favorable Licensing Policy' to Make Cuba More Reliant on American Fuel: Report

The Trump administration is moving to ease fuel shipments to Cuba's private sector as part of a broader strategy to make the island more dependent on U.S. supplies, increasing Washington's leverage to push for political and economic change, according to a new report.

Under the approach, the Treasury Department's Office of Foreign Assets Control would "implement a favorable licensing policy" allowing certain fuel sales, including the resale of Venezuelan oil to Cuba. Transactions benefiting Cuba's government would remain barred.

The goal, sources told Bloomberg, is to position U.S. companies as the primary suppliers to Cuba's emerging private businesses, replacing long-standing dependence on allies such as Venezuela and Russia.

A White House official asked about the plan described Cuba as "a failing nation whose rulers have had a major setback with the loss of support from Venezuela and with Mexico ceasing to send them oil." The official added that "as the President stated, we are talking to Cuba, whose leaders should make a deal."

The shift comes amid a severe energy crisis in the island. Cuba did not receive any oil in January for the first time in a decade, Bloomberg reported. Vortexa analyst Rohit Rathod claimed that without new shipments, existing supplies could last only weeks: "I would give it until late-March before they run out of fuels." Aging thermoelectric plants require roughly 100,000 barrels per day, while domestic production covers about two-fifths of demand.

Fuel shortages have led to blackouts and forced some residents to cook over open fires. While Havana recently allowed private firms to import fuel for their own use, volumes remain limited and the process uncertain. "Importing fuel is not the same as importing beer or chicken," said Oniel Díaz, founder of consulting firm AUGE. "There are a lot of technical details that are still unclear."

The strategy unfolds as U.S. officials reportedly held discussions with Raúl Guillermo Rodríguez Castro, the grandson of Raúl Castro, on the sidelines of a Caribbean summit. An official told Axios the contacts were "discussions about the future," adding that "the regime has to go," though what that entails remains undecided.

Secretary of State Marco Rubio has said Cuba has "a system that's in collapse" and indicated that expanded freedoms could ease U.S. pressure: "We'd be helpful."