The United States has imposed sanctions on Cuba’s state-owned oil and gas company, Union Cuba-Petroleo (CUPET), under President Donald Trump’s Executive Order 14404. Secretary of State Marco Rubio accused Cuba’s Communist government of using energy resources to sustain repression and enrich its leadership.
Rubio highlighted that while ordinary Cubans face fuel shortages and blackouts due to under-investment, Cuba’s leadership diverts energy resources for its own benefit. The State Department alleged that Cuba’s leaders hoard energy supplies for military and repressive forces, resell scarce energy, and ration energy for social control.
Under the sanctions, all property and interests in property of CUPET in the US or under US persons’ control will be blocked. Transactions involving the sanctioned entity are prohibited unless authorized by the Treasury Department’s Office of Foreign Assets Control (OFAC). The State Department warned that engaging with sanctioned entities or sectors in the Cuban economy could lead to sanctions exposure.
The US aims to target Cuba’s ability to leverage energy trade for its agenda through these sanctions. The broader effort under various executive orders and memorandums seeks to promote human rights, rule of law, free markets, and democracy in Cuba. Sanctions are part of a longstanding US policy towards Cuba, with core restrictions remaining in place for over six decades.
