Cuba's top trade official says Washington is the main obstacle to the island's free-market reforms. Meanwhile, state-run institutions in Havana struggle to keep cash in banks, power on the grid and food on shelves.
Oscar Perez-Oliva Fraga, Cuba's foreign trade and deputy prime minister, told Reuters the US trade embargo is the biggest impediment to reforms. He also denied that Cuban officials had met with representatives of businesses linked to President Donald Trump. “I have no knowledge of any company directly linked to President Trump having made contact with Cuba,” he said. “It is not our policy to prohibit US companies from investing in Cuba, trading with Cuba, or conducting business of any kind with Cuba. What prevents this possibility is the existence of the trade embargo.”
The Reform Pitch
The reforms came out in June, three months ago. If fully implemented, they would mark the biggest change to the island's socialist economy since Fidel Castro took control in 1959, 67 years ago. Washington says they don't go far enough and has called for “free and fair” elections.
Perez-Oliva said Washington must ease sanctions for further progress. He pointed to an oil blockade imposed in January that all but eliminated imports from Mexico, Venezuela and other former top fuel suppliers. He also criticized a State Department policy that lets US companies export fuel to Cuba's private sector. “(The policy) is aimed at forcing Cuba's economic dependence,” he said. “We will never again be a colony of any country.”
The figures tell a more complicated story. US oil and fuel exports to Cuba climbed to 778,000 barrels in June from 476,000 in May, US data show. That's about 26,000 barrels a day, compared with 1,000 barrels for all of January, the Energy Information Administration reported.
Investors are waiting. Canada's Sherritt International suspended direct participation in a nickel and cobalt mining joint venture with the Cuban government after a May executive order threatened sanctions on mining-related businesses. Australia's Antilles Gold is weighing its next move. Perez-Oliva said neither company has withdrawn, though both are “evaluating alternatives.” He also dismissed rumors that he's being groomed as Cuba's next president.
Cash Shortages and a Street Market
Inside Cuba's state banks, the strain is visible. The central bank, Banco Central de Cuba, ordered “zero tolerance” for corruption among staff in a statement published September 28. Days earlier, on September 24, a pro-government Facebook page linked to the Interior Ministry reported detentions in Santiago de Cuba. Authorities held staff at the state banks BPA and Bandec, suspected of selling scarce cash for fees of 30% to 50%. The detainees haven't been named and remain presumed innocent unless a court rules otherwise.
The backdrop is a payment policy launched on August 3, 2023, three years ago, that shifted transactions into bank accounts and electronic channels. Some shops still refuse bank transfers. Branches and ATMs often run short of notes. A street market has emerged. In July, a complaint reported by CiberCuba said a 1,000-peso transfer bought only 600 pesos in cash. The informal rate stood at 745 pesos to the dollar on September 28, up about 10% in 30 days.
One reader summed it up in a Facebook comment: “If there were money in the bank and cash machines, nobody would profit from trading cash for a percentage.” The bank's statement changed no rules for account holders and offered no measure to add banknotes to branches or ATMs. On September 16, it began issuing 10,000- and 20,000-peso notes, the highest denominations Cuba has issued. Officials also outlined 20 planned banking changes, including room for banks with private and foreign capital.
Power, Fuel and Priorities
At 6 a.m. on September 27, the grid had 1,240 megawatts available against demand of 2,750, a shortfall of 1,500 megawatts, the Ministry of Energy and Mines reported. The national grid shut down completely on September 18, the eighth nationwide blackout of 2026. For months, two-thirds of Cuba had no electricity at night, the Associated Press reported.
Against this backdrop, independent outlet 14ymedio reported that builders have fenced off a Havana site for the King Salman Mosque. Official sources put the budget at about US$9.3 million from the Saudi Fund for Development. The site adjoins the disused Tallapiedra power station. Whether Cuba asked Saudi Arabia for oil or fuel credit isn't publicly known, and officials have made no construction timetable public.
Daily life goes on. About 178 students still attend the National Ballet School each morning. Dani Hernández, a principal dancer who directs the school, has slept on his building's terrace during blackouts. “The entire situation we're experiencing today could affect a generation of students,” he said.
Why This Matters:
Cuba's leaders describe sanctions as the barrier, yet the reporting shows problems inside the state system itself: banks without cash, a grid that can't meet demand, and an informal market setting the real price of money. Investors like Sherritt and Antilles Gold remain caught between US sanctions and Cuban conditions. From a market perspective, the reforms announced in June will be tested less by rhetoric than by whether cash, fuel and contracts become reliable. The June rise in US fuel exports suggests trade channels can move quickly when rules allow. Washington's demand for elections keeps the political question tied to any economic opening.