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CUPET
OrganisationCU

CUPET

Union Cuba-Petroleo: Cuba's state oil and gas company managing domestic production of approximately 40,000 barrels per day and import licensing; designated under EO 14404 on 11 June 2026.

Cuba's CUPET was placed on the OFAC sanctions list on 11 June, and no oil tanker has reached its Matanzas or Santiago terminals since.

Last refreshed: 26 July 2026 · Appears in 1 active topic

Key Question

Does CUPET's designation finally close the last oil loophole for Cuba?

Timeline for CUPET

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Background

Cuba's 23 July 2026 medical-missions sanctions wave cited CUPET's own 11 June designation as part of the same widening campaign, one that has moved from fuel and finance into labour exports while leaving CUPET's own restrictions unchanged.

CUPET (Union Cuba-Petroleo) is Cuba's state oil and gas company, founded after the 1959 revolution. It manages Cuba's domestic crude production of roughly 40,000 barrels a day against national demand of 110,000-120,000 BBL/day, and holds exclusive authority to issue fuel import licences and manage terminal infrastructure at Matanzas and Santiago.

No private Cuban importer has the pipeline access, terminal rights or licensing authority to route around CUPET, which is what made it a single point of control over the island's fuel supply when OFAC designated it in June, and why each subsequent wave, medical missions included, is read against the same energy-and-hard-currency logic.

Key Issues
Sanctions chokehold

Its designation stranded Cuba's fuel reform

CUPET was placed on OFAC's Specially Designated Nationals list on 11 June under Executive Order 14404, the most consequential single designation of 2026's sanctions escalation because it controls the ports, customs clearance and import licensing through which virtually all of Cuba's crude enters the island . Secretary Rubio framed the action as redress for 1960s expropriations rather than a national-security emergency, a legal basis considerably harder to unwind with a discretionary licence.

Cuba's National Assembly reform, passed one week later on 18 June, legalised non-state fuel imports, but the provision is inoperable: every import terminal and filling station runs through CUPET, now off-limits to any firm touching US-connected banks. A pre-negotiated 250,000-barrel Vanguard Energy deal was cancelled after the State Department denied authorisation for any use of CUPET's facilities, and no tanker has reached Matanzas or Santiago since .

Common Questions
What does CUPET do in Cuba?
CUPET (Union Cuba-Petroleo) is Cuba's state oil company. It manages the island's domestic crude production of about 40,000 Barrels Per Day, operates import terminals at Matanzas and Santiago, and controls all fuel import licensing. No private Cuban importer can bypass its infrastructure.Source: Lowdown Cuba Dispatch Update 7
Why did the US sanction CUPET in June 2026?
OFAC designated CUPET on 11 June 2026 under Executive Order 14404 for operating in Cuba's energy sector. Secretary Rubio also cited the 1960 nationalisation of American-owned oil assets, framing the designation as a property-rights remedy rather than purely a national-security measure.Source: Al Jazeera / Baker McKenzie
How does the CUPET designation affect Cuba's oil supply?
Because CUPET controls all fuel import licensing and terminal access, its designation exposes any tanker operator, insurer or financier serving a CUPET transaction to US secondary sanctions. This closes the last private-buyer loophole and leaves Cuba with no licensed import channel at a time when the grid deficit already exceeded 2,000 MW.Source: Lowdown Cuba Dispatch Update 7
Can Cuba import oil now that CUPET is sanctioned?
Legally, no licensed channel remains. The March 2026 private-buyer carve-out was already impractical because private importers must route through CUPET infrastructure. With CUPET itself on the SDN list, secondary-sanctions exposure deters the shipping, insurance and financing companies that any crude delivery would require.Source: Lowdown Cuba Dispatch Update 7
Is the CUPET sanction reversible?
The property-rights framing Rubio used (rooting the action in 1960 nationalisations rather than a national-security emergency) makes the designation harder to reverse with a discretionary general licence than a purely order-based listing. Sanctions analysts note that resolving a pre-existing expropriation dispute requires a legislative or negotiated settlement, not just executive discretion.Source: Baker McKenzie Global Sanctions Blog
Is CUPET still under US sanctions?
Yes. OFAC designated CUPET, Cuba's state oil company, under EO 14404 on 11 June 2026, and the sanction remained in force through the 23 July medical-missions designation wave.Source: US Treasury OFAC
How does the CSMC sanctions wave relate to CUPET?
Both are part of the same widening US sanctions campaign against Cuba, which hit fuel (CUPET, June), then finance and GAESA-linked firms, and now medical-missions exports (CSMC, 23 July).Source: US State Department