The United States has imposed sanctions on Cuba’s state owned oil company, accusing Havana of using energy resources to strengthen its grip on power and benefit the ruling elite….reports Asian Lite News Desk
The United States has imposed sanctions on Cuba’s state owned energy company, Union Cuba-Petroleo (CUPET), as the administration of President Donald Trump intensified pressure on the Cuban government over allegations of repression, corruption and economic mismanagement.
The sanctions were announced by US Secretary of State Marco Rubio, who accused Cuba’s Communist leadership of exploiting the country’s energy sector to maintain political control while ordinary citizens continue to endure chronic fuel shortages and frequent power outages.
In a statement, Rubio said the Cuban government had long used energy supplies as a tool of repression and self enrichment.
“Like every resource on the island, energy has long been weaponized by Cuba’s Communist government as a tool of both repression and self serving regime kleptocracy,” Rubio said.
The State Department alleged that while decades of underinvestment had left much of Cuba struggling with blackouts and fuel scarcity, the country’s leadership had diverted energy resources for its own interests.
According to Rubio, Cuban authorities have resold scarce fuel supplies, prioritised energy access for military and intelligence agencies and used fuel rationing as a means of social control.
He also accused the government of favouring luxury tourist facilities while ordinary Cubans faced significant hardships.
“As regular Cubans wait for weeks to fill their cars and suffer relentless blackouts, the Castro family flies around on a private jet, the government buses in fake protesters for publicity stunts, and the regime prioritises keeping the power on in luxury tourist hotels,” Rubio said.
The sanctions were imposed under Executive Order 14404, with the State Department designating CUPET for operating in the energy sector of the Cuban economy. Rubio further claimed that key assets controlled by the company had been unlawfully expropriated from American owners in the past.
“The Trump Administration will continue to target Cuba’s ability to leverage energy trade to further its corrupt agenda and repressive security apparatus,” he added.
The latest measures form part of a broader US policy framework that includes Executive Orders 14404 and 14380, as well as National Security Presidential Memorandum 5. Washington says these measures are intended to promote democracy, human rights, free markets and the rule of law in Cuba.
Under the sanctions, all property and interests belonging to CUPET that are located in the United States or held by US persons will be frozen. Any such assets must be reported to the Treasury Department’s Office of Foreign Assets Control (OFAC).
The sanctions also prohibit most transactions involving the company unless specifically authorised by OFAC.
The State Department warned that foreign companies, financial institutions and individuals conducting business with sanctioned entities or operating in designated sectors of the Cuban economy could face sanctions exposure themselves.
Officials urged non US entities to exercise caution when engaging with parties targeted under the new measures, warning that the transfer or return of assets to sanctioned organisations could carry significant risks.
While outlining the sanctions framework, the State Department said the purpose of such measures was ultimately to encourage changes in behaviour rather than simply punish those targeted.
The United States has maintained varying levels of economic sanctions on Cuba for more than 60 years, making it one of the world’s longest running sanctions regimes. Although different administrations have adjusted aspects of policy towards Havana, the core restrictions have remained largely intact.
