The U.S. government imposed sanctions on Cuba’s state-owned oil and gas company, Union Cuba-Petroleo (Cupet), on Thursday, marking the latest escalation in tensions between the two nations. The move blocks all property and interests of the company within U.S. jurisdiction and requires reporting of any dealings to the Treasury Department’s Office of Foreign Assets Control.
Secretary of State Marco Rubio announced the sanctions under Executive Order 14404, which targets entities linked to repression and threats to U.S. national security. The State Department alleges Cupet functions as a tool of the Cuban government’s repression, rationing energy to control the population while enriching regime elites. Rubio claimed the company’s assets were unlawfully expropriated from American owners years ago.
The sanctions follow recent U.S. actions against Cuban President Miguel Díaz-Canel and other officials, as well as the economic conglomerate GAESA. The Trump administration has framed these measures as efforts to weaken Cuba’s communist leadership and promote democratic change. However, the Cuban government has previously condemned sanctions as punitive measures that harm ordinary citizens.
Fuel shortages and blackouts have plagued Cuba for years, with public fuel sales heavily rationed. The U.S. asserts that Cuban officials divert energy resources to military and intelligence operations, while the regime denies these allegations. The sanctions aim to disrupt the regime’s ability to leverage energy trade for political repression, according to Rubio.
The Cuban government has not yet responded to the latest sanctions. The move is expected to further strain relations between the two countries, which have been strained for decades.