U.S. to allow resale of Venezuelan oil to Cuba

The Office of Foreign Assets Control (OFAC) under the U.S. Department of the Treasury will allow the resale of Venezuelan origin oil to Cuba's non-governmental sectors, according to an update from the OFAC on Wednesday.

The office said it will implement a "favorable licensing policy" toward specific license applications seeking authorization for the resale of Venezuelan origin oil to Cuba.

This "favorable licensing policy" is directed toward transactions including exports for commercial and humanitarian use in Cuba and others in Cuba's private sector, according to the OFAC.

Transactions involving, or for the benefit of, any persons or entities associated with the Cuban military, intelligence services, or other government institutions, would not be covered by this favorable licensing policy, said the OFAC.

The United States has labeled Cuba "an unusual and extraordinary threat" to national security, saying it will stop Cuba from receiving Venezuelan oil after the January military operation that forcibly took Venezuelan President Nicolas Maduro. It has taken control of Venezuela's oil exports after the military raid.

On Jan. 29, U.S. President Donald Trump signed an executive order threatening to impose tariffs on goods exported to the United States from countries supplying oil to Cuba.