A Coral Gables energy company is set to ship a badly needed supply of fuel to Cuba, in what has been described as a landmark deal that comes even as the United States maintains an oil blockade on the island. The arrangement would see an American firm step directly into Cuba's energy market at a moment of acute shortage on the island.
The company at the center of the deal is Vanguard Energy, based in Coral Gables. Under the agreement, the firm will lease Cuban government storage facilities and supply fuel to the island's private sector, as well as to humanitarian and religious organizations, rather than to state-run entities.
The deal is being viewed as a significant first step, one that could potentially pave the way for more United States companies to do the same. If others follow, it would mark a notable shift in how American businesses engage with the Cuban market despite the wider restrictions in place.
According to the law firm that helped broker the agreement, the plan is to ship around 250,000 barrels of diesel fuel and gas every 40 days. The regular cadence of those shipments points to a sustained supply line rather than a one-off delivery to the island.
The opening for the deal traces back to February, when the White House allowed oil exports to Cuba, specifically for the private sector. That decision created the narrow channel through which a private American supplier could now begin sending fuel to the island.
The announcement nonetheless comes during a United States imposed oil blockade. Earlier this year, President Trump signed an executive order threatening tariffs on any country that delivers fuel to Cuba, a measure that has triggered an energy crisis on the island and left it short of supplies.
The fuel arrangement is unfolding against a backdrop of sharp tensions between Washington and Havana. Cuba's top diplomat in the United States, Ambassador Lianys Torres Rivera, condemned the sanctions placed on Cuban leaders, said Cuba is not a threat, and warned that any effort to change the country's government by force or coercion would be met with fierce resistance.