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Secret US-Cuba Energy Deal Collapsed Over Political Demands

Havana: The Trump administration secretly explored an energy deal with Cuba earlier this year that would have provided US oil and investment to the island in exchange for major economic and political changes, according to media reports Thursday. But Cuban resistance and political pressure in Miami prevented the agreement.

According to Anadolu Agency, the proposal would have provided Cuba with US oil if Havana agreed to privatize its state-owned energy company, CUPET. Washington also wanted US investors to gain control of the company, which operates refineries, storage facilities, and fuel distribution through CIMEX, part of the military conglomerate GAESA.

The proposal emerged after Venezuela's Nicolas Maduro was captured by US forces on January 3, ending oil supplies Caracas provided to Havana. Cuba produces only about 40% of the oil it consumes, while its aging power grid and Soviet-era plants have suffered repeated breakdowns.

The Trump administration later declared a national emergency related to Cuba and threatened tariffs against countries supplying the island with oil. In February, Washington authorized the sale of US oil to private Cuban entities, signaling its interest in Cuba's energy sector.

US Republican Rep. Maria Elvira Salazar commented at a congressional hearing in April, "The Cuban people deserve freedom, not another deal to keep the same regime in power." US officials met Raul Guillermo Rodriguez Castro, the grandson of former leader Raul Castro, in Saint Kitts and Nevis in February, according to the Miami Herald.

Rodriguez Castro reportedly stated that Cuba could accept economic reforms, but Washington could not dictate how the country was governed. US lawmakers Carlos Gimenez and Mario Diaz-Balart questioned reports of negotiations with the Castro family, while Salazar opposed any agreement that could preserve the existing government.

The Trump administration later shifted toward sanctions, targeting GAESA in May and CUPET in June. Cuba's foreign minister said Monday that communication channels with Washington remained open but that there had been "no progress" and no negotiations were currently taking place.