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Cuba Dispatch
15APR

Treasury carves Cuba out of Venezuela oil easing

3 min read
19:30UTC

A broad US authorisation on 18 March let Venezuelan crude flow to global markets again, but named Cuba alongside Russia and Iran in the exclusions.

PoliticsDeveloping
Key takeaway

Washington eased Venezuela sanctions for the world and tightened them against Havana in the same stroke.

On 18 March 2026 the US Treasury issued a broad authorisation permitting PDVSA (Petróleos de Venezuela, S.A., the Venezuelan state oil firm) to sell crude on world markets, including to US refiners, in response to Iran-war supply pressure 1. The licence carried an explicit carve-out: transactions involving Cuba, Russia, Iran, North Korea and certain Chinese entities remain prohibited.

The practical effect is a two-tier settlement of Venezuela policy. Most of the world regains access to PDVSA crude at a moment when Hormuz disruption has pushed refiners to scramble for non-Iranian supply. The Cuban state, historically PDVSA's single most politically-loaded customer, does not. Cuba is grouped with strategic adversaries rather than with ordinary sanctions targets, which is a structural categorisation rather than a tactical one.

The instruments involved are the Cuban Assets Control Regulations (CACR), the statutory framework Treasury administers through its Office of Foreign Assets Control (OFAC), and the 1996 LIBERTAD Act underpinning them. GAESA (Grupo de Administración Empresarial S.A., the Cuban military's economic conglomerate) is the specific state actor blocked from buying. Payments under the general licence route to a US-controlled account with gold and cryptocurrency settlement prohibited, closing the workaround channels Havana has used in previous tight-fuel episodes. The carve-out is the policy decision around which the remainder of the Cuba dispatch is organised.

Deep Analysis

In plain English

The US eased oil sanctions on Venezuela so most of the world could buy Venezuelan crude again. But it explicitly banned Cuba from that deal. Think of it as the US reopening a petrol station to everyone except one customer. Cuba used to depend on Venezuela for cheap oil to keep its power stations running. That supply is now cut off at the source. The lights that go out each evening in Havana are partly a direct consequence of this decision.

Deep Analysis
Root Causes

GAESA's dominance of Cuban oil imports means any Venezuela-Cuba fuel channel routes through the Cuban military conglomerate. US sanctions logic since 2019 has targeted GAESA specifically, making it structurally impossible to allow Cuban state oil imports without benefiting the entity the sanctions most intend to pressure.

The timing reflects Iran war supply politics: the March 18 authorisation was driven by Hormuz disruption pushing US refiners to seek alternative supply. Cuba's exclusion was the political cost of selling the Venezuela easing to the Miami Republican delegation and the Senate Foreign Relations Committee hardliners.

What could happen next?
  • Consequence

    Cuba's state thermal fleet is deprived of its most commercially-accessible emergency fuel source, extending the grid crisis beyond what Russian tanker cadence alone can offset.

    Short term · 0.85
  • Risk

    If Russia cannot sustain tanker deliveries at fortnightly intervals, Cuba faces rolling grid collapse rather than managed brownouts; with hospital and water-treatment consequences quantified by the UN.

    Medium term · 0.72
  • Precedent

    Grouping Cuba with Russia, Iran and North Korea in a statutory exclusion sets a categorisation that will be difficult to walk back without a formal sanctions redesignation.

    Long term · 0.8
First Reported In

Update #1 · Cuba carve-out survives Venezuela oil easing

Military.com· 15 Apr 2026
Read original
Different Perspectives
Cuban government (MINREX / FM Rodríguez Parrilla)
Cuban government (MINREX / FM Rodríguez Parrilla)
FM Parrilla posted on 14 April that Washington is "creating confusion to maintain a fuel blockade", describing EO 14380 as demonstrating an "extraterritorial character" that intimidates and extorts third-country firms trading with Cuba. The framing deliberately mirrors the UN rapporteurs' February language, building a multilateral legal record for Geneva and OAS forums.
US administration (White House / Treasury)
US administration (White House / Treasury)
EO 14380 enforces statutory Cuba sanctions through CACR and LIBERTAD Act, and the 18 March carve-out reflects deliberate policy to exclude Cuban state entities from the Venezuela easing rather than reverse it. Trump dismissed the Russian tanker: "Cuba's finished. Whether or not they get a boat of oil, it's not going to matter."
UN Special Rapporteurs (Saul / Fakhri / Douhan)
UN Special Rapporteurs (Saul / Fakhri / Douhan)
The 12 February OHCHR joint statement described EO 14380 as "an extreme form of unilateral economic coercion with extraterritorial effects" and warned restricting Cuba's fuel imports risks constituting collective punishment of civilians. The finding creates a political record Washington must answer in multilateral forums without yet triggering a formal legal ruling.
Florida Cuban-American delegation (Giménez / Díaz-Balart / Salazar)
Florida Cuban-American delegation (Giménez / Díaz-Balart / Salazar)
The 11 February joint letter to OFAC and BIS demanded revocation of every active licence authorising US business with Cuban state-controlled entities, invoking the LIBERTAD Act. The three Miami-area representatives argue the sanctions architecture must deny every dollar to GAESA and have pressed Treasury on whether the 25 March private-sector licence creates enforcement gaps.
Russia (Kremlin / Energy Minister Tsivilyov)
Russia (Kremlin / Energy Minister Tsivilyov)
Tsivilyov pledged at the Kazan energy forum that Moscow would "not leave Cubans alone in trouble" as the Anatoly Kolodkin docked with 730,000 barrels on 31 March; a second vessel was confirmed loading. The deliveries defy EO 14380 secondary tariff threats and test US enforcement credibility at minimal cost to Moscow.
OCDH / Prisoners Defenders (Cuban human rights monitors)
OCDH / Prisoners Defenders (Cuban human rights monitors)
OCDH's March report confirmed no political prisoner was included in the amnesties and documented 53 new detentions in the same month; Prisoners Defenders counts 1,214 political prisoners as of March 2026. The monitors argue the amnesty announcements are diplomatic theatre: the denominator barely moved while new cases are continuously added.