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Cuba's Economic Crisis Deepens as Oil Shortage Sparks Reform Push

Yahoo Finance •
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Cuban President Miguel Díaz-Canel called for urgent economic reforms as the island faces a severe energy crisis triggered by dwindling oil reserves and a halt in Venezuelan shipments. Speaking at a Council of Ministers meeting, Díaz-Canel emphasized the need for immediate transformations to Cuba's economic and social model, citing mounting pressure from U.S. sanctions and fuel shortages.

Cuba's crisis deepened after the U.S. attacked Venezuela in January, disrupting oil supplies that the Caribbean nation depends on. The government has implemented fuel-saving measures including halting public transportation and moving classes online. Prime Minister Manuel Marrero Cruz identified food production and power grid modernization as top priorities as severe outages persist.

Energy Minister Vicente de la O Levy acknowledged slow progress in municipal sustainability strategies despite distributing solar panels to key sectors. Cuba faces a staggering $8 billion revenue loss from U.S. sanctions between March 2024 and February 2025, a 50% increase from the previous period. The Treasury Department recently eased some restrictions on Venezuelan oil sales to Cuba, but the energy crisis is expected to continue.