Feb 19 • 19:18 UTC 🇲🇽 Mexico El Financiero (ES)

Oil arrives in Cuba: Fuel will be for foreign companies... but resale is prohibited on the island

Cuban private companies are now importing fuel directly amidst US oil sanctions, but the government has prohibited resale to address energy shortages.

Cuba is facing significant challenges in meeting its energy needs due to US oil sanctions that have intensified since Donald Trump's presidency. In response, small private businesses on the island have started importing fuel directly, providing a slight relief in an otherwise suffocating energy crisis. While this move has opened up possibilities for foreign firms operating in Cuba, the strict bureaucratic processes and the ongoing complications from US sanctions pose major hurdles for these imports.

The fuel shipments are primarily intended to meet the specific needs of these foreign businesses and do not address the overall energy deficit the country faces, which is approximately 110,000 barrels per day. Of this total, only about 40,000 are sourced from domestic wells, indicating a significant reliance on external fuel supplies. The Cuban government has convened meetings in recent days with local entrepreneurs and foreign business representatives to outline how these imports will work, signaling a shift towards seeking operational solutions amid the ongoing embargo.

However, the prohibition on resale of the imported fuel places limitations on how these resources can be utilized within Cuba. This regulation suggests the government's focus on maintaining control over energy distribution while trying to mitigate the crisis without fully opening the market to local entrepreneurship. The situation highlights the complexities of managing a struggling economy under external pressures and the delicate balance the government must maintain to sustain foreign investments while addressing domestic needs.

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