On Thursday, Senator Marco Rubio declared the designation of Unión Cuba-Petróleo (CUPET) as a sanctioned entity under Executive Order 14404, signed by President Trump on May 1st. This move represents the most direct blow yet to the Cuban regime's energy sector.
The sanction is enforced under Section 2(a)(i)(A) of the executive order for CUPET's involvement in the Cuban energy industry. This action immediately freezes all assets and interests of CUPET within U.S. jurisdiction or held by individuals subject to U.S. laws.
Foreign companies conducting business with CUPET or operating in Cuba's energy, defense, metals, financial services, or security sectors now risk facing secondary sanctions.
Rubio articulated the rationale behind this measure: "The Cuban communist elites have used energy as a tool for social control and kleptocratic profit."
He detailed how "the regime has hoarded and misappropriated available fuel, using it for the Castro's private jet, security forces to suppress the Cuban people, to keep empty tourist hotels lit, and to transport people for staged protests and political maneuvers."
All this, he emphasized, occurred "while the Cuban populace endured blackouts and waited weeks to fill up their cars."
The CUPET designation follows revelations that Vanguard Energy, based in Coral Gables, Florida, had signed a contract with a Cuban import agency to lease CUPET facilities and send over 250,000 barrels of gasoline and diesel per trip. This was described as the largest U.S. fuel shipment to Cuba since the Eisenhower era.
On the same Wednesday, the State Department denied authorizing this operation, reaffirming that "Trump administration sanctions remain in place without specific guidance or a license to the contrary."
With CUPET's designation, any legal ambiguity is now resolved.
Rubio concluded his announcement with a statement defining Washington's stance: "President Trump envisions a new future for the Cuban people with greater freedom and economic and political opportunities. Until then, we will continue to undermine the communist regime's ability to use its energy trade to further its corrupt agenda and violently suppress the Cuban people."
This marks the second significant action under EO 14404 in less than five weeks.
On May 7, Rubio had already imposed sanctions on GAESA, the military-business conglomerate controlling Cuban tourism and imports, along with its executive president and Moa Nickel S.A.
On May 19, Rubio hinted at more sanctions targeting regime elites, and days later, the U.S. sanctioned Cuban intelligence, MININT, and the PNR under the same executive order.
In May, shipping companies Hapag-Lloyd and CMA CGM had already halted operations with Cuba following the implementation of these secondary sanctions.
The measures arrive during the worst energy crisis Cuba has faced in decades.
Since January, Venezuelan oil supplies were cut off after Nicolás Maduro's capture, and Mexico halted shipments fearing U.S. tariffs.
The electrical deficit hit a record 2,153 MW on May 13, leading to blackouts of up to 22 hours daily in Havana and over forty consecutive hours in eastern Cuba.
Cuban Energy Minister Vicente de la O Levy admitted in May that Cuba had "absolutely no fuel, diesel, only accompanying gas."
The crisis has sparked an unprecedented wave of protests: the Cuban Conflict Observatory documented 1,311 demonstrations in May 2026, featuring pot-banging, barricades, and bonfires in at least 12 Havana municipalities.
Understanding the Impact of Sanctions on Cuba's Energy Sector
Why was CUPET sanctioned by the United States?
CUPET was sanctioned for its operations within Cuba's energy sector, which are seen as supporting the communist regime's social control and corrupt practices.
What are the consequences for foreign companies dealing with CUPET?
Foreign companies that transact with CUPET or operate in certain sectors within Cuba may face secondary sanctions from the United States.
How has the energy crisis affected daily life in Cuba?
The energy crisis has led to extensive blackouts, severely impacting daily life in Cuba with electricity shortages, long waits for fuel, and sparking widespread protests.