As Cuba grapples with a severe energy crisis, the Russian tanker Akademik Gubkin arrived on the island's northeastern coast on Tuesday, February 18, carrying a substantial shipment of approximately 790,000 barrels of oil. This delivery is valued at $55 million, marking one of the largest oil consignments Cuba has received in recent times. The island is currently enduring critical energy restrictions.
Departing from the Baltic port of Ust-Luga on January 29, the Akademik Gubkin was last reported near Nipe Bay in Holguín. However, there is speculation that the tanker could unload in Matanzas or Havana, according to information from EFE via the Energy Institute at the University of Texas. Jorge Piñón, an energy specialist at the university, noted that this vessel might be "one of the largest and deepest-draft tankers to arrive in Cuba." He emphasized that the tanker is "almost at full capacity," given its total capacity of 818,902 barrels.
Piñón further highlighted that this shipment indicates Russia's intention to export as much oil as possible under current sanctions. The vessel is operated by Rosnefteflot, the shipping arm of Russian state oil company Rosneft, which manages the distribution of Urals crude. According to the London Stock Exchange Group (LSEG), this operation demonstrates Moscow's strategy to diversify its buyers using its parallel fleet of tankers.
Sanctioned Vessel Under U.S. Restrictions
The Akademik Gubkin (IMO 9842190) was added to the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctions list on January 10 of this year, under the section related to Rosnefteflot. The Biden Administration imposed these restrictions shortly before leaving office as part of a broader sanctions package against the Russian oil industry, affecting 183 vessels, including those in the so-called "shadow fleet." This fleet consists of ships used to bypass international trade restrictions on oil, facilitating shipments to countries avoiding Western sanctions.
Decline in Russian Oil Imports
According to LSEG data, Cuba imported roughly 100,000 tons of Russian crude in 2024, a significant drop from the 200,000 tons in 2023 and 600,000 tons in 2022. This decline coincides with the European Union's total embargo on Russian crude, which took effect in December 2022, forcing Moscow to reroute most of its maritime exports to Asia and other markets.
Tourism for Oil and Financial Negotiations
In recent months, Rosneft organized flights to Cuba for hundreds of its employees, who visited the island under a tourism-for-oil scheme approved by Moscow and Havana. Meanwhile, Cuban ambassador to Russia, Julio Antonio Garmendía, announced earlier this year that both governments were negotiating a $60 million credit for purchasing Russian fuel. However, it remains unclear if the agreement has been finalized.
The U.S. sanctions aim to impact the Kremlin's revenue stream, heavily reliant on hydrocarbon exports to finance its Ukraine invasion. Despite restrictions, Russia continues to use its sanctioned tanker fleet to maintain exports and strengthen ties with strategic allies like Cuba. Meanwhile, Cuba faces a worsening fuel shortage, with the nation heading towards an impending energy collapse. The situation has deteriorated following the shutdown of Unit 1 of the Felton Thermoelectric Plant from the National Electric System (SEN) due to a malfunction, expected to last at least 20 days.
Energy Deficit in Cuba
The arrival of Russian oil comes at a critical time for the island. Piñón estimates, based on 2022 official data, that Cuba faces a daily deficit of about 80,000 barrels of liquid fuel, essential for operating its ailing power generation system. However, the expert notes that by 2024, demand has decreased by 20,000 barrels per day, partly due to shipments from Venezuela and especially Mexico.
A report by Mexican state oil company Pemex, presented to the U.S. Securities and Exchange Commission, revealed that Mexico exported $500 million worth of oil and derivatives to Cuba between January and September 2024, as reported by El Financiero. The Cuban government attributes the electricity generation crisis to the decline in crude imports from allied countries and has taken measures to increase the share of solar energy in the national energy matrix.
Currently, solar energy represents just 9% of Cuba's total consumption, vastly overshadowed by imported fossil fuels. To address this, Cuban authorities have launched a program aiming to build 100 solar parks across the country by 2031, with an installed capacity of approximately 2,000 megawatts.
FAQs on Cuba's Energy Crisis and Russian Oil Imports
What is the significance of the Akademik Gubkin's oil delivery to Cuba?
The Akademik Gubkin's delivery of 790,000 barrels of oil is one of the largest shipments Cuba has received recently, crucial amid its severe energy crisis.
Why has Cuba's import of Russian oil decreased?
Cuba's import of Russian oil has decreased due to the European Union's embargo on Russian crude, prompting Russia to redirect exports to Asia and other markets.
How is Cuba addressing its energy deficit?
Cuba is addressing its energy deficit by increasing the share of solar energy in its national energy matrix and by negotiating oil imports from allies like Venezuela and Mexico.