Marco Rubio, Secretary of State
June 11,
2026
Like every resource on the island, energy has
long been weaponized by Cuba’s Communist government as a
tool of both repression and self-serving regime kleptocracy.
While the Cuban people have suffered fuel shortages and
blackouts because of decades of under-investment in critical
infrastructure, Cuba’s Communist leaders have diverted
energy resources to line their own pockets: reselling
countless barrels of scarce energy on the secondary market,
hoarding energy supplies for its military, intelligence and
repressive forces, and rationing energy as a tool of social
control. As regular Cubans wait for weeks to fill their cars
and suffer relentless blackouts, the Castro family flies
around on a private jet, the government buses in fake
protesters for publicity stunts, and the regime prioritizes
keeping the power on in luxury tourist hotels.
That is
why, today, I am designating Cuba’s state-owned oil and
gas company Union Cuba-Petroleo (CUPET), key assets of which
were unlawfully expropriated from American owners years ago,
pursuant to President Trump’s Executive Order (E.O.) 14404
of May 1, 2026. CUPET is being designated pursuant to
Section 2(a)(i)(A) of E.O. 14404, for operating or having
operated in the energy sector of the Cuban economy. The
Trump Administration will continue to target Cuba’s
ability to leverage energy trade to further its corrupt
agenda and repressive security apparatus.
The
Department’s actions are being taken pursuant to E.O.
14404, which authorizes sweeping sanctions on Cuba,
including persons who support the Cuban regime’s security
apparatus and those responsible for repression in Cuba and
threats to U.S. national security. Today’s action also
furthers the objectives of the national emergency declared
in E.O. 14380, “Addressing Threats to the United States by
the Government of Cuba” and the National Security
Presidential Memorandum 5 (NSPM-5), which direct the
Executive Branch to improve human rights, encourage the rule
of law, foster free markets and free enterprise, and promote
democracy in Cuba.
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Sanctions Implications
As a
result of today’s sanctions-related actions, and in
accordance with E.O. 14404 of May 1, 2026, “Imposing
Sanctions on Those Responsible for Repression in Cuba and
for Threats to U.S. National Security and Foreign Policy,”
all property and interests in property of the designated
entity described above that are in the United States or in
possession or control of U.S. persons are blocked and must
be reported to the Department of the Treasury’s Office of
Foreign Assets Control (OFAC). Additionally, all entities
that are owned individually or in the aggregate, 50 percent
or more by one or more blocked persons are also
blocked.
All transactions and dealings by U.S. persons
or persons within (or transiting) the United States that
involve any property or interests in property of designated
or otherwise blocked persons are prohibited unless
authorized by a general or specific license issued by OFAC
or exempt. These prohibitions include the making of any
contribution or provision of funds, goods, or services by,
to, or for the benefit of any blocked person and the receipt
of any contribution or provision of funds, goods, or
services from any such person. Foreign persons who engage in
transactions with persons designated pursuant to E.O.
14404—or that operate in the energy, defense and related
materiel, metals and mining, financial services, or security
sector of the Cuban economy, as identified in E.O.
14404—are themselves at risk of sanctions. Non-U.S.
persons, including foreign financial institutions, should
proceed with caution in any dealings with a party sanctioned
under this authority. Actions to return assets to a
sanctioned party or transfer them to another jurisdiction
for potential use by the target could expose non-U.S.
persons to significant sanctions risk. All property and
interests in property of persons that are blocked pursuant
to the Cuban Assets Control Regulations (CACR) continue to
be blocked. The CACR prohibits persons subject to U.S.
jurisdiction from dealing in property in which Cuba or a
Cuban national has an interest, unless authorized or
exempt.
The power and integrity of U.S. government
sanctions derive not only from the U.S. government’s
ability to designate and add persons to the Specially
Designated Nationals and Blocked Persons (SDN) List, but
also from its willingness to remove persons from the SDN
List consistent with the law. The ultimate goal of sanctions
is not to punish, but to bring about a positive change in
behavior.
Petitions for removal from the SDN List may
be sent to: OFAC.Reconsideration@treasury.gov. Petitioners
may also refer to the Department of State’s Delisting
Guidance
page.
