The US government has sanctioned Cuba’s state oil and gas apparatus as part of a broader escalation that now threatens foreign companies doing business on the island. The move comes while Cuba endures its worst energy crisis in decades, with blackouts lasting up to 22 hours per day in parts of the country, including Havana.
Executive Order 14404, issued on May 1, 2026, doesn’t just tighten the screws on Cuba directly. It empowers secondary sanctions, meaning foreign entities involved in Cuba’s energy, defense, metals mining, financial services, and security sectors are now in the crosshairs too. In English: if a company anywhere in the world helps keep Cuba’s lights on, it could find itself locked out of the US financial system.
What happened and why it matters
On May 7, the US officially designated GAESA and Moa Nickel S.A. as Specially Designated Nationals. GAESA is the Cuban military-linked enterprise estimated to control up to 40% of the country’s economy. Being slapped with SDN status is roughly the financial equivalent of being placed in solitary confinement. Any assets these entities hold under US jurisdiction are frozen, and Americans are broadly prohibited from dealing with them.
