AGP Executive Report

Energy Sanctions Shock: The Trump administration sanctioned Cuba’s state oil and gas monopoly CUPET/Unión Cuba-Petróleo under EO 14404, freezing US-linked assets and raising barriers to fuel imports as blackouts and fuel shortages deepen. Shipping Fallout: Hapag-Lloyd and CMA CGM suspended new cargo bookings to Cuba, while a Florida fuel deal (Vanguard Energy) was put on hold after the State Department said no US license was granted. Humanitarian Pressure: The UN’s Volker Türk said US sanctions are contributing to children’s deaths in Cuba, citing doubled infant mortality and worse childhood cancer outcomes. Havana Pushback: Cuba’s foreign minister Bruno Rodríguez and PM Manuel Marrero Cruz condemned the move as further “economic and energy blockade” and “collective punishment.” Grid Strain On the Ground: Cuba’s Guiteras plant is reportedly preparing a restart, but outages continue; Guantánamo also reported a major transmission-line failure. Local Food Access: Holguín evicted vendors from the “Los Chinos” market, adding pressure during the worst supply crisis in decades. Solar Workarounds: Europe-backed panels expanded ELAM’s solar capacity, and Holguín’s first solar charging station is nearing operation for tricycles and community services. Labor Response: Cuba told the ILO it will protect workers amid the “economic warfare” and fuel embargo, though details remain thin.

Humanitarian Alarm: UN High Commissioner Volker Türk says U.S. sanctions and blockade-linked shortages are driving deaths of children in Cuba, with infant mortality reportedly doubling and cancer survival falling as doctors lack essential medicines. Sanctions Debate: The White House pushes back, saying measures target Cuban leaders and entities supporting “subversion,” while Reuters reports UN warnings of broad harm to water, food, and healthcare. Fuel & Industry Shock: Cuba’s energy squeeze keeps hitting production and services; meanwhile, Transat reports a $95M earnings hit from fuel costs and Cuba flight suspensions, underscoring how aviation and logistics costs ripple into Cuba-linked trade. Fuel Supply Deal: A U.S.-to-Cuba fuel shipment plan is framed as a major change: Vanguard Energy reportedly contracts to store 250,000 barrels of diesel and gasoline in Cupet tanks, aiming to cover about 11 days of demand. Currency Pressure: The informal market shows new highs—USD at 640 CUP, EUR at 730 CUP, and MLC at 450 CUP—deepening purchasing-power strain. Private Sector & Military Business Image: Cuba’s media campaign to improve GAESA’s image highlights more USD-to-CUP financing claims for agriculture inputs. Foreign Investment Pitch: Cuba tells Korean firms it still offers opportunities in solar, biotech, and organic agriculture, while warning companies to navigate sanction risk case-by-case. Tourism Fallout: Varadero is described as a “ghost town” as the tourism collapse leaves workers unemployed and businesses strained.

Fuel & Logistics: A Coral Gables firm, Vanguard Energy, says it has struck a landmark deal to ship fuel to Cuba’s private sector on U.S.-linked tankers, with safeguards meant to keep the gasoline and diesel from being diverted to the Cuban government. Energy Blockade Impact: Cuba’s foreign minister denounced the U.S. energy blockade, saying fuel shortages are blocking aid deliveries by UN agencies and other groups. Power & Waste Management: In Havana, Díaz-Canel toured recycling operations as the city’s garbage crisis worsened amid diesel shortages and long blackouts that cripple collection and exports. Health & Biotech Production: Cuba highlighted the reactivation of cytostatic drug production (16 medicines) for cancer care, framing it as sovereignty under sanctions and energy limits. Solar for Transport: Holguín’s first solar charging station has finished construction and is set to run 24/7, offering free community services and charging for electric tricycles and other small transport. Security & Military Pressure: U.S. Defense Secretary Pete Hegseth warned Cuba against acquiring weapons that could reach the U.S. homeland or Guantánamo, while Cuba’s top envoy in Washington called sanctions a pretext for military action. Trade/Industry Watch: Cuba’s push to deepen health and biotech ties— including talks about collaboration with India—comes as sanctions squeeze imports and hard-currency access.

Defense Pressure at Guantánamo: U.S. Defense Secretary Pete Hegseth warned Cuba against seeking weapons that could reach the U.S. homeland or the Guantánamo base, saying it would invite a confrontation Havana “could not withstand.” Diplomatic Pushback: Cuba’s top envoy to Washington called new U.S. sanctions and the Raúl Castro indictment a “pretext” to sell military intervention to Americans, insisting Cuba is not a threat. Energy Shock and Fuel Logistics: Reuters reports Cuba could receive the biggest U.S. fuel shipment since the Cold War embargo, with a Florida firm in talks to export 250,000 barrels (100,000 gasoline, 150,000 diesel) for Cuba’s private sector. Healthcare Strain: Cuba’s Ministry of Public Health says 95,000 patients are waiting for surgery, including 5,000 cancer cases, with dialysis disrupted by water and electricity failures. Tourism Slowdown: Reuters says foreign visitors are thinning out fast as shortages, blackouts, and U.S. threats keep major hotel chains scaling back. Agriculture and Land Rules: A draft Agricultural and Forestry Land Law would protect socialist land ownership while allowing usufruct access, shaping how farmers and foreign investors can operate. Public Health Risk: New World screwworm has been confirmed in Texas, raising pressure on livestock protection efforts. Earthquake Aftermath: A 6.1 quake off Cuba was felt across Southwest Florida, with aftershocks considered likely.

Cuba-US Sanctions & Military Rhetoric: Cuba’s top envoy in Washington, Lianys Torres Rivera, says new U.S. sanctions on Cuban leaders and the Raúl Castro indictment are a “pretext” to justify military action, calling the situation “a war without bombs.” Humanitarian & Health Impact: UN High Commissioner Volker Türk warns the restrictions are worsening Cuba’s humanitarian crisis, with children dying as essential medicines and supplies fail to reach doctors. Energy Crisis & Fuel Shipments: The U.S. is preparing what would be its biggest fuel shipment to Cuba since the embargo, but the volumes are tiny versus daily diesel needs and are limited to the private sector. Industrial Policy & Legal Reform: Cuba’s National Assembly published four draft laws covering the Labor Code, Agricultural and Forestry Land, Housing, and the Organization of the Central State Administration, aiming to update rules and expand citizen input. Biopharma Production: Cuba says it has resumed production of 16 cytostatic drugs after investment in AICA Laboratories under Biocubafarma, targeting better cancer medicine availability. Tourism Pressure: Reuters reports Cuba’s tourism is shrinking again, with foreign visitors scarce as fuel shortages and sanctions deter major hotel operators. Migration Flows: Brazil intercepted 108 Cuban nationals in a smuggling operation, citing a growing trend of irregular migration through border gateways.

Humanitarian Aid: Mexico and Belize sent 1,700 tons of food and basic necessities to Cuba, with the cargo ship Asian Katra docking in Havana as shortages worsen amid energy and economic strain. Sanctions & Health Impact: The UN human rights chief Volker Türk urged the Trump administration to lift oil embargoes and extraterritorial sanctions, saying children are dying as medical supplies fall to about 30% availability. Energy & Daily Life: Cubans described severe, rolling blackouts and fuel-driven hardships, including rising taxi costs and disrupted routines. Infrastructure & Justice: Guantánamo inaugurated a new Provincial People’s Court headquarters after a 20 million-peso investment, adding multiple courtrooms and services. Seismic Disruption: A 6.1 offshore earthquake near Cuba triggered precautionary evacuations in Havana and shook Florida, briefly suspending some Disney World rides. Tourism & Payments: Reports say foreign hotel chains are pulling back under tighter U.S. pressure, while Cuba moves to stop Visa and Mastercard payments.

Humanitarian Aid: Mexico and Belize sent 1,700 tons of food and basic necessities to Cuba, arriving in Havana on a Panama-flagged cargo ship as the island faces worsening energy shortages and U.S. pressure. Energy & Daily Life: Cuba’s power crisis is driving public unrest, with residents blocking Havana’s Vía Blanca after days without electricity, while fuel restrictions and tightened sanctions are blamed for cascading outages and shortages. Sanctions Watch: The UN human rights chief Volker Türk warned expanded U.S. sanctions are harming Cubans, saying children are dying as medical supplies and medicines are blocked; meanwhile the U.S. announced new sanctions targeting Díaz-Canel, military-linked entities, and even a gold mining joint venture. Finance & Payments: Reports say Cuba is moving to stop Visa and Mastercard transactions amid the squeeze on the island’s financial system. Industry/Logistics: Foreign businesses are reportedly pulling back as sanctions deadlines bite, adding pressure to tourism and shipping. Natural Disruption: A 6.1 earthquake off Cuba triggered tremors across Florida, prompting safety shutdowns at some attractions and building evacuations.

Humanitarian Logistics: A ship carrying 1,700 tons of food and basic necessities arrived in Havana from Mexico and Belize, with Cuba’s trade minister citing faster logistics workarounds despite the energy blockade. Fuel & Transport Strain: Cuba’s worsening fuel crisis is leaving “almendrones” vintage shared taxis idle; drivers and auto workers report long waits for small gasoline allocations via a reservation app. Power Outage Fallout: Blackouts are driving daily life into crisis mode, with Havana residents staging pot-banging protests and reports of demonstrations tied to prolonged electricity shortages. Sanctions Pressure on Business: New U.S. measures are pushing foreign firms to exit; hotel chains and payment/financial partners are pulling back to avoid compliance risk, raising fears of more unemployment and tighter economic activity. Energy/Industry Tech Note: Cervecería La Tropical says it improved dosing accuracy and canning performance using Qdos metering pumps and FaBLINE hoses, aiming to boost efficiency amid scarcity. Circular Economy at Street Level: A Holguín secondhand market piece highlights how Cubans increasingly rely on informal buy-sell networks and repairs to stretch scarce goods.

Sanctions-Driven Exodus: The Wall Street Journal reports more foreign firms are quitting Cuba as US pressure and an economic collapse make operations untenable, with Visa/Mastercard suspending card use for many visitors and major hotel groups (including Meliá and Iberostar) cutting ties with dozens of properties. Tourism Shock: Canadian carriers WestJet and Sunwing have suspended all Cuba flights and packages indefinitely, citing Cuba’s worsening operational conditions. Humanitarian Supply Push: Cuba received 1,700 tons of basic goods from Mexico and Belize, arriving in Havana aboard the Asian Katra, as shortages deepen. Energy Crisis Reality Check: A new report highlights how Cuba’s rotating blackout system is leaving much of the country without power for long stretches, feeding a broader humanitarian emergency. Local Business Pressure: Miami-Dade revoked licenses tied to unauthorized cement shipments to Cuba, while Matanzas warned state drivers they’ll lose operating licenses if they refuse passenger pickups. Policy Shift for Hotels: Cuba is courting the diaspora to invest and manage hotels and other priority sectors, offering tariff incentives for industrial inputs.

Tourism Shock: Canada’s Air Canada, WestJet and Air Transat have suspended all flights and vacation packages to Cuba indefinitely, with no new restart date—another hit after earlier pauses tied to Cuba’s worsening energy and economic crisis. Energy & Grid Strain: Cuba’s power system is under severe pressure, with blackouts and plant outages worsening demand shortfalls; residents also report daily disruptions and mounting frustration. Currency Pressure: The informal dollar and euro rate hit fresh highs in Cuba, widening the gap with official rates and squeezing household purchasing power. Local Protests: Havana neighborhoods staged pot-banging demonstrations over prolonged blackouts and water shortages, signaling growing public anger. Telecom Reality Check: ETECSA’s online services won an international “champion” award, but users continue to complain about slow connectivity and tariff impacts. Sanctions & Business Fallout: New U.S. sanctions target Cuban military-linked entities, while foreign hotel operators keep exiting or cutting back operations in response to GAESA-linked restrictions. Mining Sanctions: Australian Antilles Gold halted trading after U.S. sanctions hit its Cuba joint venture, underscoring risk for extractive projects.

Electricity Crunch: UNE reports Cuba’s SEN availability at just 1,090 MW versus demand near 3,050 MW, with peak deficits approaching 1,990 MW as multiple thermoelectric failures and fuel shortages leave large parts of the grid uncovered. Water & Daily Survival: A viral clip shows Cubans juggling no water and no electricity at once, while another story highlights how people adapt cooking and routines during blackouts. Bread & Wheat Supply: Cuba’s food industry minister says wheat mills are idle or barely operating, regulated bread reaches only part of the population, and 2026 distribution of key basics remains stalled. Tourism Shock: Varadero and Cárdenas are described as “ghost town” conditions as hotel-linked jobs dry up; Archipelago International confirms it is exiting Cuba, joining other chains scaling back under U.S. pressure. Sanctions & Oil Pressure: Cuba rejects claims that the U.S. doesn’t block oil shipments, citing tariff threats under an executive order; Cuba also denounces expanded U.S. sanctions targeting Díaz-Canel and others. Telecom Friction: ETECSA touts a WSIS award for its online services, but residents complain about connectivity and generator noise. Currency Strain: Informal rates hit new highs for the dollar, euro, and MLC, signaling worsening purchasing power.

Energy & Daily Life: A Cuban woman’s beans went from electric cooking to coal after a blackout, underscoring how power cuts keep disrupting food production and household routines. Currency & Purchasing Power: Cuba’s informal market hit fresh highs: USD at 615 CUP, the euro at 700 CUP, and MLC at 450 CUP, continuing a rapid peso slide. Tourism & Services: Canada’s Sunwing and WestJet indefinitely suspended Cuba trips, citing the island’s deep crisis—another blow to a sector already under pressure. Sanctions & Governance: The U.S. imposed new sanctions on President Miguel Díaz-Canel, his wife, and other close figures, while Cuba rejected claims that Washington doesn’t block oil shipments. Industrial Inputs & Equipment: Cuba authorized a Spanish firm (DIETAMPA) to market industrial and electrical technologies and spare parts, as energy strain and infrastructure deterioration worsen. Infrastructure Theft: In Santiago de Cuba, photovoltaic panels tied to telecom cabinets were stolen again, leaving users without service and adding economic losses. Health & Production: Cuba and Russia formalized cooperation on medical supplies and cancer vaccines, with renewed cytostatic drug production mentioned amid sanctions. Humanitarian Logistics: Colombia sent about 100 tons of aid to Cuba, including food, medicines, hospital supplies, electrical materials, and solar panels. Food Supply Risk: Fuel shortages are also being linked to stalled trash pickup in Havana, raising sanitation concerns.

Hotel Sector Shake-Up: Cuba says it will let Cuban investors at home and abroad manage hotels as Spanish chain Meliá exits 15 of 34 properties, with other operators also scaling back—another hit to a tourism industry battered by the fuel and power crisis. Travel Disruption: Canadian carriers Sunwing and WestJet (and WestJet Cargo where applicable) suspend all Cuba trips indefinitely, citing the worsening situation for local communities and industry partners. Energy Pressure: Cuba rejects Rubio’s claim that the U.S. doesn’t block oil shipments, pointing to Trump’s tariff penalties on countries supplying oil to Havana and warning the policy worsens the island’s chronic fuel shortage. Sanctions Escalation: The U.S. targets Díaz-Canel, family and key Cuban entities, and also expands secondary sanctions that raise the risk for foreign firms dealing with state sectors. Telecom Theft: In Santiago de Cuba, stolen solar panels and photovoltaic panels from ETECSA infrastructure are reported again, with repeated thefts disrupting services and adding economic losses. Health & Industry: BioCubaFarma reports AICA Laboratories has restarted cytostatic drug production to supply 16 cancer medicines, while Cuba’s broader strain continues amid sanctions. Animal Health Spillover: A New World screwworm case is confirmed in Texas, triggering quarantine and surveillance—an agricultural risk that also underscores the wider regional spread affecting livestock.

US Sanctions Escalate: The Trump administration imposed fresh sanctions on Cuba’s President Miguel Díaz-Canel, his wife, and key figures tied to the Castro family and Cuba’s security apparatus, freezing assets and intensifying pressure amid an energy blockade that has worsened blackouts, water shortages, and food scarcity. Tourism Under Strain: The squeeze is hitting Cuba’s hotel business hard: Spain’s Meliá says it will stop managing 15 of 34 hotels, joining other foreign exits, while Sunwing indefinitely suspends its Cuba program. Payments Cut Off: Cuba will stop accepting Visa and Mastercard starting June 6 after a foreign bank ended its relationship with Fincimex (GAESA’s financial arm), threatening a major revenue channel for goods and services. Energy Crisis Fallout: Reports describe prolonged power outages and cascading impacts on water, transport, and food storage, with some households forced back toward animal traction and older farming methods. Conservation Spotlight: In a rare non-crisis note, a Guantánamo-led visit assessed conservation actions at Alejandro de Humboldt National Park, backed by international climate and biodiversity funding.

Cuban Sanctions Escalation: The U.S. Treasury added Cuba’s President Miguel Díaz-Canel, his wife Lis Cuesta Peraza, and stepson Manuel Anido Cuesta to its sanctions list, alongside Alejandro Castro Espín (“El Tuerto”) and relatives tied to Raúl Castro, plus entities including MINFAR, the CDR, ICAP, Amistur Cuba, and Minera La Victoria—freezing assets under U.S. jurisdiction and restricting U.S. dealings, as Havana condemned the move and warned it aims to reinforce an energy blockade that has fueled blackouts and shortages. Tourism & Finance Pressure: Reporting links the sanctions push to Cuba’s tourism squeeze and foreign exits, with GAESA repeatedly cited as a key economic gatekeeper, while Visa and Mastercard access is reported to be disrupted amid the broader crackdown. Energy & Telecom Resilience: Cuba’s Etecsa in Holguín installed seven photovoltaic modules to keep basic phone and data services running during the electricity crisis, targeting continuity and autonomy for thousands of subscribers. Tech & Internet Noise: Separate from Cuba, Cloudflare says AI agents now generate most web traffic—an “agentic” shift that’s reshaping how online services are used and scaled. Health & Biosecurity Watch: In Texas, officials confirmed the first New World screwworm case, highlighting how animal-health outbreaks can quickly ripple into food and livestock costs.

Tourism Shock: Spain’s Meliá is cutting back in Cuba, stopping management/commercialization and brand licensing for 15 hotels as US sanctions and energy constraints keep many properties non-operational. Payments Freeze: Cuba’s central bank says Visa and Mastercard transactions will be suspended from June 6 after a foreign banking partner pulled services, hitting goods and services payments and worsening the tourism squeeze. Sanctions Pressure on GAESA: The card cutoff follows expanded US sanctions targeting GAESA, with Havana denying the conglomerate is used to enrich elites. Energy & Waste Crisis: Havana’s garbage crisis is spiraling as power outages and fuel shortages stall trash pickup, leaving residents dealing with rotting refuse, flies, and burning waste. Health Innovation: Cuba’s CIM highlights VAXIRA, a lung cancer vaccine treatment, as it marks another milestone for local biotech under blockade conditions. Diplomacy & Solidarity: China and Cuba reaffirm support at UN-level meetings, with Cuban officials stressing sovereignty and opposition to the blockade. Business Continuity: Sherritt appoints an interim CFO to manage filings and navigate Cuba-related sanctions and operational challenges.