The U.S. Treasury Department announced it will authorize companies to obtain licenses to resell Venezuelan oil to Cuba, a move aimed at easing the Caribbean island’s acute fuel shortages.

Axar.az, citing Reuters, reports that the guidance clarifies that transactions must support the Cuban people, including the private sector, and cannot involve the Cuban military, intelligence, or other government institutions.

Venezuela had historically been Cuba’s primary oil supplier through barter agreements, but recent U.S. controls over Venezuelan oil exports have halted shipments. Major trading houses, such as Vitol and Trafigura, manage most of Venezuela’s exports, and additional barrels are stored in Caribbean terminals for resale.

While the new policy allows transactions without requiring an established U.S. entity, it remains uncertain whether Cuba can afford oil purchases at commercial terms, given the island’s longstanding financial constraints. U.S. measures have left several fuel cargoes undelivered since December, exacerbating Cuba’s energy shortages.

The policy also exempts Cuba from previous license limitations, allowing resales under special licenses that comply with Treasury requirements, while U.S. officials, including Secretary of State Marco Rubio, are engaging with regional leaders over the humanitarian and energy situation.