U.S. sanctions Cuba's state oil company amid fuel supply crisis

(Bloomberg) — The U.S. government has imposed sanctions on Cuba's state-owned oil and gas company, Unión Cuba-Petróleo (Cupet), a move that could further complicate fuel supply efforts on the island as it faces a prolonged energy crisis.

The U.S. Treasury Department's Office of Foreign Assets Control added Cupet to its sanctions list on Thursday. The company plays a central role in Cuba's energy sector, overseeing much of the country's oil production, refining operations, fuel distribution network and related infrastructure.

Cuba produces approximately 40,000 bpd of crude oil, according to Bloomberg, covering roughly 40% of domestic demand. The island relies on imports to meet the remainder of its fuel needs.

The sanctions could affect efforts to supply fuel to Cuba's growing private sector. Earlier this week, Florida-based Vanguard Energy said it was working to export 250,000 bbl of diesel and gasoline intended for private businesses on the island rather than state entities.

The new restrictions come as Cuba continues to face fuel shortages and electricity supply challenges. The country's energy situation has been further strained by reduced access to imported crude and refined products.

Secretary of State Marco Rubio said the sanctions target a company that has played a central role in Cuba's energy system and state-controlled economy.

Energy analysts noted that Cupet's extensive involvement in fuel distribution and infrastructure operations may complicate efforts to separate private-sector fuel transactions from state-controlled energy activities.

The sanctions represent the latest U.S. action affecting Cuba's energy sector as Washington continues to tighten economic pressure on the island's government.

Cupet remains responsible for much of Cuba's oil production, refining capacity and fuel distribution network, making it one of the country's most strategically important energy entities.