Secretary of State Marco Rubio announced on Thursday sanctions against Unión Cuba-Petróleo (CUPET), the Cuban state enterprise responsible for the importation, refining, and distribution of fuel on the island. These measures are enacted under President Trump's Executive Order 14404.
Rubio took to his official X account to directly accuse the regime's leadership of exploiting energy resources as tools for oppression and illicit enrichment.
"Cuban communist elites have weaponized energy as a means of social control and kleptocratic profit," Rubio stated in his post.
The Secretary of State elaborated on how the regime has misused fuel over the years.
"For decades, the regime has hoarded and misappropriated available fuel for the Castro family's private jet, security forces used to oppress the Cuban people, to keep vacant tourist hotels lit, and to transport individuals for staged protests and political maneuvers," Rubio added.
He highlighted that all of this occurred "while the Cuban population endured blackouts and waited weeks to refuel their cars."
Energy as a Tool of Oppression
In the official statement accompanying the sanction, Rubio asserted that energy has long been used by the Cuban government as a tool for "repression and kleptocracy for its own benefit."
According to the Secretary of State, the island's leaders have diverted energy resources to supply military and intelligence forces, resell fuel in secondary markets, and use rationing as a mechanism of social control.
Rubio closed his announcement with a clear message regarding Washington's objectives:
"President Trump envisions a new future for the Cuban people with greater freedom and economic and political opportunities. Until then, we will continue to target the communist regime's ability to use its energy trade to advance its corrupt agenda and violently suppress the Cuban people."
Impact on U.S.-Cuba Business Deals
The sanction impacts the Vanguard-CUPET agreement. In the official statement, the State Department reminded that CUPET controls assets that were illegally expropriated from U.S. owners. Rubio explained that the designation was made under Section 2(a)(i)(A) of Executive Order 14404 for operating in Cuba's energy sector.
"While everyday Cubans wait weeks to fuel their cars and suffer constant blackouts, the Castro family travels in private jets, the government transports fake protesters in buses for PR stunts, and the regime prioritizes keeping luxury tourist hotels powered," Rubio stated in the release.
The official note also specifies that all CUPET assets and interests in the United States or under U.S. persons' control are blocked and subject to the Treasury Department's Office of Foreign Assets Control (OFAC) oversight.
Additionally, the restrictions extend to any entity that is owned, individually or jointly, 50% or more by sanctioned individuals or companies.
The State Department emphasized that prohibitions cover any transactions involving funds, assets, or services related to the designated entity, unless specifically licensed or exempted by the OFAC.
Broader Economic Sanctions
The announcement follows a day after it was revealed that Vanguard Energy, a Coral Gables, Florida-based company, was allegedly contracted with a Cuban import agency to lease CUPET facilities and send over 250,000 barrels of gasoline and diesel per trip, described as the largest U.S. fuel shipment to Cuba since the Eisenhower era.
However, on the same Wednesday, the State Department denied authorizing that operation, indicating that "Trump administration sanctions remain in effect absent specific guidance or a contrary license."
The designation of CUPET as a sanctioned entity definitively closes any legal loopholes: no U.S. company can operate through its facilities without violating federal sanctions.
The sanction against CUPET is the second major action under EO 14404 in less than five weeks. On May 7, Rubio had already formalized sanctions against GAESA, the military-business conglomerate controlling Cuban tourism and imports, alongside its CEO Ania Guillermina Lastres Morera and the company Moa Nickel S.A.
On May 19, Rubio publicly anticipated more sanctions against the regime's elites under the same executive order. EO 14404 also introduced secondary sanctions for foreign companies and financial institutions maintaining ties with sanctioned entities, prompting shipping companies like Hapag-Lloyd and CMA CGM to suspend operations with Cuba in May.
The State Department warned Thursday that foreign individuals and companies doing business with sanctioned entities or organizations linked to Cuba's energy, military, financial, mining, or security sectors could face punitive U.S. measures. The warning expressly includes foreign financial institutions facilitating transactions related to CUPET.
"The Trump Administration will continue to target Cuba's ability to use energy trade as a means to advance its corrupt agenda and repressive security apparatus," Rubio stated when announcing the measure.
The statement adds that the decision also responds to the objectives of the national emergency declared in Executive Order 14380, titled Addressing Threats to the United States by the Government of Cuba, and the National Security Presidential Memorandum 5 (NSPM-5), which directs the U.S. government to promote human rights, the rule of law, free enterprise, and democracy in Cuba.
Washington also reiterated that the sanctions aim not only to punish but to encourage behavioral change. "The ultimate goal of the sanctions is not punishment, but to foster a positive change in behavior," concludes the statement.
Cuba Faces Unprecedented Energy Crisis
The sanctions come at a time of the worst energy crisis the island has faced in decades.
Since January 2026, Venezuelan oil supplies were halted following Nicolás Maduro's capture, and Mexico ceased its shipments fearing U.S. tariffs.
The electricity deficit reached a record 2,153 MW on May 13, with blackouts lasting up to 22 hours daily in Havana and more than forty consecutive hours in eastern Cuban areas.
Cuba's Energy Minister, Vicente de la O Levy, admitted in May that Cuba was completely out of fuel, diesel, and only had accompanying gas.
Currently, Cuba generates less than 1,000 megawatts of electricity, barely a third of the approximately 3,000 MW needed to meet national demand.
The crisis has sparked an unprecedented wave of protests: the Cuban Conflict Observatory recorded 1,311 demonstrations in May 2026 alone, with pot-banging protests, barricades, and bonfires in at least 12 Havana municipalities.
Understanding U.S. Sanctions on Cuba
What is the reason behind the U.S. sanctions on CUPET?
The U.S. imposed sanctions on CUPET because it is believed that the Cuban government uses energy resources to oppress the people and enrich the regime's elites illicitly.
How do these sanctions affect U.S. companies?
U.S. companies are prohibited from engaging in transactions involving CUPET's assets or interests. This includes leasing facilities or exporting fuel to Cuba without violating federal sanctions.
What has been the impact of the energy crisis in Cuba?
The energy crisis has led to significant power shortages, daily blackouts, and has sparked widespread protests across the island.