Mexico to Resume Oil Deliveries to Cuba via Private Firms Amid Shortage

Mexico is set to resume oil deliveries to Cuba, with President Claudia Sheinbaum announcing that the shipments will be facilitated by private companies. This decision comes as Cuba grapples with a severe fuel shortage, stemming from disruptions in oil supplies from Venezuela and, more recently, Russia.

"The mechanism would be through private companies that have permits to transport fuel to Cuba," Sheinbaum stated. This approach marks a shift from previous arrangements where state-owned firms handled the deliveries. The move also seeks to capitalize on Cuba's recent market-oriented reforms, which signal a partial departure from its socialist planned economy and include privatization measures.

President Sheinbaum indicated that Mexican entrepreneurs already active in Cuba would be involved in the commercial transport of oil. Mexico had previously halted its oil supplies to the island in late January, reportedly under pressure from the United States, which has maintained a long-standing embargo against the communist-ruled nation. The U.S. had threatened tariffs on countries supplying oil to Cuba.

Cuba's energy crisis has been significantly worsened by the reduced oil flows. The island nation has been experiencing regular power outages and water shortages. While Mexico and Uruguay provided aid shipments in May, the resumption of commercial oil deliveries is seen as a crucial step toward stabilizing the country's energy situation.

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The mechanism would be through private companies that have permits to transport fuel to Cuba.