Vanguard Energy to ship 250,000 barrels of fuel to Cuba

A Florida-based energy company is in advanced talks to finalize a deal that would send the largest shipment of U.S. fuel to Cuba in over six decades, aiming to alleviate an acute energy crisis on the island by supplying its private sector. Vanguard Energy plans to export 250,000 barrels of diesel and gasoline, comprised of 150,000 barrels of diesel and 100,000 barrels of gasoline, under an arrangement that would utilize leased government storage tanks in Cuba.

The potential shipment follows a policy shift by the U.S. government in February that authorized fuel exports to Cuba for private sector economic activities without requiring a specific license. Vanguard's president, Matthew Klann, stated the company's plan complies with this Commerce Department policy and that sales would be limited to vetted private businesses, embassies, religious organizations, and humanitarian groups. A lawyer involved in the negotiations emphasized that the fuel would remain under U.S. ownership and supervision while stored on the island, with safeguards to prevent diversion to sanctioned government entities.

Cuba has been contending with severe fuel shortages, leading to prolonged blackouts and...