Cuba poised for biggest US fuel shipment since Cold War embargo

A Florida trading company is in advanced talks to send Cuba the biggest cargo of U.S. fuel since the Eisenhower administration as the island nation contends with an acute energy crisis.

Vanguard Energy already was sending small shipments of gasoline and diesel to Cuba and now is gearing up to expand those volumes, company President Matthew Klann said.

The company recently leased storage tanks in Cuba as it takes steps to export 250,000 barrels of diesel and gasoline. The fuel is designated exclusively for the private sector rather than state actors, Klann said in an interview.

If ultimately realized, it would be the largest Cuba-bound U.S. fuel cargo since the Eisenhower administration froze most trade with the island in retaliation for the Fidel Castro regime's seizure of American oil refining assets in 1960.

The shipment will be comprised of 100,000 barrels of gasoline and 150,000 of diesel. Based on U.S. government estimates, that's enough gasoline to supply almost 11 days of typical demand.

In the aftermath of the U.S. capture of the leader of Cuba's main sponsor Venezuela in January, American energy deliveries to the island have been directed to humanitarian efforts and private enterprises that include roughly 9,200 small enterprises.

Klann said he's already secured Cuban government approval. The U.S. Treasury and State departments didn't immediately return requests seeking comment on Vanguard's plans. The Cuban Embassy in Washington and Cuba's Foreign Ministry, which handle international press inquiries, didn't immediately respond either.

Vanguard's recent shipments were undertaken after the U.S. Commerce Department in February eased restrictions to allow sales of American fuel to private Cuban firms.

Although the Cuban economy has been in crisis for years, matters took a turn for the worse last year after the U.S. imposed a de facto oil blockade against Venezuela, previously Cuba's biggest benefactor. The Trump administration's ringfence tightened with the ouster of Venezuelan strongman Nicolas Maduro at the start of this year. Russian efforts to supply Cuba have largely fizzled.

Vanguard has preliminarily secured a U.S.-flagged ship for the voyage, and the supply of gasoline and diesel from a refinery in Texas. It also inked a five-year lease agreement with an entity associated with the Cuban government, allowing it to use storage tanks on the island to help with distribution of the fuels, Klann said.

While talks are in advanced stages, the company is still in the process of finalizing details.

The Trump administration is pushing to bring about political and economic reforms to the island via a combination of sanctions, cutting off its access to energy supplies and threats of tariffs against any country willing to send crude to Cuba. Without oil used in power generation and to make fuels, the country has been plunged into darkness. Cubans have endured prolonged blackouts, sparking unrest and sporadic protests across the island.

As the country ran out of fuel, it eased restrictions. In February, President Miguel Diaz-Canel's government allowed private enterprises to import fuels, a privilege previously reserved only for the state.

Since then, small parcels have made their way in so-called iso-tanks, which are large cylinders mounted inside a standard shipping-container frame. Each one carries no more than 150 barrels of fuel, and they tend to cost much more than bulk shipments aboard tankers that can transport 250,000 barrels per voyage.

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(With assistance from Jim Wyss.)

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