Lawyer Luis Carlos Battista from FitzGeorge Law issued a stark warning to the Cuban regime on Friday, following Washington's sanctions against CUPET: open your economy to private investment or face an endless and futile struggle for the Cuban people.
In an interview with CiberCuba, Battista spoke shortly after Secretary of State Marco Rubio announced sanctions against CUPET, the state-run company that controls the import, refining, and distribution of fuel in Cuba.
The sanctions, enacted under Donald Trump's Executive Order 14404, freeze CUPET's assets under U.S. jurisdiction and threaten secondary penalties for any foreign business that collaborates with the Cuban oil company.
Economic Reforms: An Urgent Necessity
When asked what advice he would offer the regime if he were their advisor, Battista didn't mince words: "The Cuban economic model has failed, is failing, and will continue to fail due to its economic centralization," he articulated.
He emphasized that the solution lies in granting "greater operational capacity to private capital," pinpointing CUPET as one of the prime candidates for privatization.
Expanding on his perspective, Battista also highlighted the urgent need for Cubana de Aviación to embrace private capital, including partnerships with international airlines willing to invest.
The Human Element of the Crisis
He was clear about the pressing nature of the situation, replacing the word "ideal" with something more severe: "This is the ultimate moment to implement the economic reforms being demanded since January 3 at the very least."
Battista appealed to the human cost of the crisis, questioning the endurance of the Cuban people amid prolonged blackouts lasting 20, 30, or even 40 hours. "How much longer can we endure this agony? It's particularly harsh for those living in Cuba, affecting our families there," he noted.
His guidance to the regime was unmistakable. "If I were advising the Cuban government, I would suggest exploring new ways to expand the private sector to relieve the current suffering caused by both U.S. measures and the inefficiencies of the Cuban economic system."
In closing, Battista encapsulated his analysis with a decisive statement: "Undoubtedly, there's a need to broaden the scope for investment in Cuba."
Contrasting Views on Privatization
Battista's stance stands in stark contrast to that of the regime. In 2024, Díaz-Canel reiterated that privatizing state enterprises was "not the path," even as Cuba faced one of its most severe energy crises in 2026, with blackouts stretching over 45 hours.
The sanction against CUPET followed revelations that fuel imported from the United States under a general license—meant solely for the Cuban private sector via isotanks since March 4—had been diverted to state entities, breaching the conditions set by the U.S. Department of the Treasury and the Bureau of Industry and Security.
Impact of U.S. Sanctions on Cuba
What are the recent U.S. sanctions against CUPET?
The recent U.S. sanctions against CUPET include freezing its assets under U.S. jurisdiction and imposing secondary penalties on foreign companies that engage with the Cuban oil company.
Why is Luis Carlos Battista advocating for privatization in Cuba?
Luis Carlos Battista believes that the centralized economic model in Cuba has consistently failed, and that privatization is necessary to provide operational capacity to private capital and alleviate the country’s economic crisis.
How does the Cuban government view privatization?
The Cuban government, as reiterated by Díaz-Canel in 2024, opposes privatization, viewing it as not the appropriate path despite the ongoing severe energy crisis.