Trump Administration Sanctions Cuba’s State Oil Giant "CUPET"

The Trump administration imposed sanctions on Cuba’s state-owned energy company, Unión Cuba-Petróleo (CUPET), in a move that intensifies Washington’s economic pressure on the island and threatens to further disrupt its energy sector.

The announcement comes as two of Europe’s largest container shipping companies, Hapag-Lloyd and CMA CGM, suspended cargo bookings to Cuba following a new U.S. executive order, underscoring the growing impact of Washington’s latest measures on international trade with the Caribbean nation.

U.S. Secretary of State Marco Rubio said the State Department had officially added CUPET to the U.S. sanctions list, accusing the company of benefiting from assets that were unlawfully seized from American owners following the Cuban Revolution.

“Today, I am designating Cuba’s state oil and gas company, Unión Cuba-Petróleo, under U.S. sanctions,” Rubio said in a statement, arguing that the company was linked to properties and assets that had been confiscated without compensation from U.S. citizens decades ago.

The sanctions are expected to increase restrictions on financial transactions involving the company and could complicate Cuba’s efforts to secure fuel imports and international investment.

The measures have already prompted a response from the global shipping sector.

Germany-based Hapag-Lloyd and France’s CMA CGM have suspended new cargo bookings to Cuba, citing compliance concerns related to the latest U.S. restrictions. The move raises the prospect of additional logistical challenges for the island, which relies heavily on maritime trade for fuel, food, and industrial supplies.

Industry analysts say the decisions by two of the world's leading container carriers highlight the broader reach of U.S. sanctions, which often influence commercial activities far beyond American borders.

Unión Cuba-Petróleo, commonly known as CUPET, is Cuba’s largest energy company and the central pillar of the country’s oil and gas industry.

Established in its current form in 1992, the fully state-owned enterprise oversees nearly every segment of Cuba’s energy sector, including oil and gas exploration, crude production, refining operations, fuel storage and transportation, and the distribution of petroleum products across the country.

The company also operates an extensive fuel retail network in cooperation with CIMEX, another state-owned commercial conglomerate.

As Cuba’s primary energy operator, CUPET plays a critical role in maintaining fuel supplies for transportation, electricity generation, and industrial activity throughout the island.

The latest sanctions come at a particularly challenging time for Cuba, which continues to face fuel shortages, power outages, and broader economic difficulties linked to limited foreign currency reserves and constrained access to international markets.