Ammon News - The U.S. Treasury Department said on Wednesday it would authorize companies seeking licenses to resell Venezuelan oil to Cuba's private sector, according to guidance posted on the department's website, a move that could help ease the island's acute fuel scarcity.

Since Washington took control of Venezuela's oil exports in January in the aftermath of the capture of Venezuelan leader Nicolas Maduro, the South American country's supply to Cuba has ceased, worsening an energy crisis in the communist-run country that is hitting power generation and fuel for vehicles, houses and aviation.

Venezuela had been for more than 25 years the main supplier of crude and fuel to its political ally Cuba through a bilateral pact mostly based on the barter of products and services. Mexico, which had emerged as an alternate supplier, also has halted shipments to the Caribbean island since a fuel cargo arrived in Havana in January, according to shipping data.

The U.S. Treasury's guidance makes clear that potential transactions must "support the Cuban people, including the private sector," while transactions involving or benefiting the Cuban military or other government institutions would not be covered.

Reuters