US to allow resale of Venezuelan oil to Cuba

New York (ANTARA) - The Office of Foreign Assets Control (OFAC) under the US Department of the Treasury will allow the resale of Venezuelan oil to the non-governmental sector in Cuba, according to an OFAC update on Wednesday (25/2).

The office stated that it would implement a “favourable licensing policy” for specific permit applications requesting authorisation for the resale of Venezuelan oil to Cuba.

According to OFAC, this “favourable licensing policy” is intended for various transactions, including exports for commercial and humanitarian purposes in Cuba, as well as other activities in the country’s private sector.

OFAC stated that transactions involving or for the benefit of any person or entity related to the Cuban military, intelligence services, or other government institutions would not be included in this favourable licensing policy.

The US has designated Cuba as “an unusual and extraordinary threat” to national security, stating that it would halt the supply of Venezuelan oil to Cuba following the military operation in January that forcibly ousted Venezuelan President Nicolas Maduro. Following the military attack, the US took control of Venezuelan oil exports.

On January 29, US President Donald Trump signed an executive order threatening to impose tariffs on goods exported to the US from countries that supply oil to Cuba.