Full Breakdown
U.S. Sanctions Target Cuba’s State Oil Company Amid Deepening Energy Crisis
6/12/2026, 8:20:28 AM
Immediate Action on CUPET
On 11 June 2026 the U.S. Treasury added Union Cuba-Petroleo (CUPET) to the Office of Foreign Assets Control’s sanctions list. The designation freezes any U.S.-based assets of CUPET and bars U.S. persons from conducting transactions with the company, citing Executive Order 14404 signed by President Donald Trump.
Context of the U.S. Oil Blockade
The sanctions follow a national-emergency declaration earlier in 2026 that authorized tariffs on any nation supplying oil to Cuba. Since January 2026 the United States has prohibited Venezuelan oil shipments after the capture of President Nicolás Maduro, and it has limited Russian deliveries, leaving the island with only sporadic fuel imports.
Key Actors
- Union Cuba-Petroleo (CUPET) – Cuba’s state-owned extractor, refiner and distributor of fuel.
- Marco Rubio – U.S. Secretary of State, author of the sanction announcement.
- Donald Trump – U.S. President, who has linked the measures to broader regime-change goals.
- Miguel Díaz-Canel – President of Cuba, who has described the sanctions as “genocide.”
- Lianys Torres Rivera – Head of Cuba’s mission to the United States.
- Volker Türk – UN High Commissioner for Human Rights.
- Bruno Rodríguez – Cuba’s foreign-affairs minister.
- Ricardo Herrero – Cuban economist based in the United States.
Recent Timeline
- January 2026 – U.S. threatens tariffs on all oil suppliers to Cuba.
- May 1 2026 – Executive Order 14404 expands sanction authority.
- March 2026 – Two island-wide blackouts occur; a Russian tanker arrives, providing temporary relief.
- Late May 2026 – A second Russian tanker diverts from Cuba after weeks at sea.
- June 9 2026 – Vanguard Energy announces a contract to store fuel for Cuba’s private sector.
- June 11 2026 – Treasury sanctions CUPET; Rubio issues a public statement.
Scale of the Energy Shortage
The International Energy Agency estimated in 2023 that Cuba produces roughly 40 percent of its oil needs; the remainder is imported. Since early 2026 only one Russian tanker has reached the island, while power outages have lasted up to 30 hours and fuel is rationed through CUPET’s network of refineries and storage facilities.
Humanitarian Impact
Extended blackouts have disrupted hospital operations, water distribution and public transport. UN officials have warned that children are dying from lack of medicines, and residents have resorted to cooking with coal and wood. The sanctions are described by the UN as collective punishment of civilians.
Official Statements & Responses
Rubio asserted that CUPET “weaponises energy” and that its assets were “unlawfully expropriated” from U.S. owners, framing the sanctions as pressure on the Cuban regime. Cuban diplomat Lianys Torres Rivera called the measures “criminal” and harmful to children, pregnant women and the chronically ill. UN High Commissioner Volker Türk warned that the tightened sanctions directly harm the most vulnerable Cubans.
International and Expert Criticism
The UN High Commissioner for Human Rights, the International Association of Democratic Lawyers and Italian medical groups have condemned the sanctions as violating international law. Cuban-American economist Ricardo Herrero described the policy as “indiscriminate cruelty,” while scholar William LeoGrande warned of a potential mass-migration trigger.
On-the-Ground Conditions
Cuban citizens report multi-day electricity outages, reliance on coal for cooking, interruptions to water supply, and immobilised public transport, confirming a deepening energy crisis.
Conflicting Reports & Gaps
Sources differ on the number of Russian tankers that have reached Cuba—some cite a single arrival, others note a diverted second vessel. It remains unclear whether CUPET holds any assets within U.S. jurisdiction, and the effect of the sanctions on Vanguard Energy’s pending fuel contract is still uncertain.
Verbatim Quotes
- “Cuba’s Communist elites have weaponised energy as a tool of social control and kleptocratic profit,” — Marco Rubio, X post.
- “Stop the collective punishment against children, pregnant women, the chronically ill, the elderly and the rest of the people of Cuba!!!” — Lianys Torres Rivera, X post.
- “The fuel restrictions imposed since early 2026 and recent tightening of extraterritorial sanctions, taken together, are directly harming Cubans, especially the most vulnerable,” — Volker Türk, UN statement.
- “The U.S. Secretary of State, driven by ambitions of conquest, presidential aspirations, and the vindictive sentiments of the elitist clique that propelled his political career, is now further tightening the economic and energy blockade against Cuba,” — Bruno Rodríguez, X post.
- “ Trump said that Cuba had already "sort of collapsed" and "we're going to handle that as soon as we've finished" military operations in Iran.” — Donald Trump, public remarks.
Prospects for Future Action
U.S. officials have indicated that additional sanctions or licensing restrictions may follow, while President Trump has hinted at possible military options after concluding operations elsewhere. Diplomatic talks between Washington and Havana continue, but their scope and timeline remain undisclosed.
