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Why Is Mexico Reconsidering its Oil Donations to Cuba?

Mexico could start charging Cuba for the oil it has been sending to the island, Mexican Foreign Affairs Secretary Alicia Bárcena said last month. // File Photo: Mexican Government.

Mexico may start charging Cuba for the oil it has been sending to the Caribbean nation, Mexican Foreign Affairs Secretary Alicia Bárcena said on Sept. 26, Bloomberg News reported. Under what circumstances did the donations begin, and why is Mexican President Andrés Manuel López Obrador reconsidering the terms? Would selling crude to Cuba violate U.S. sanctions? How would the move affect relations between Mexico and Cuba, and how much of a blow would the change be for Cuba’s economy?

Ryan Berg, director of the Americas Program at the Center for Strategic & International Studies: “One would think the most indebted state-owned oil company in the world, Pemex, would not have the capacity or luxury to gift oil to anyone—and yet, that’s exactly what we’ve seen in Mexico’s case. Under President Andrés Manuel López Obrador (AMLO), Mexico has sent several cargoes of oil to Cuba, joining the ranks of the Maduro regime in Venezuela, which also routinely does the same. In exchange, Cuba generally provides ‘services’ in the form of internal security in the case of Venezuela, and several ‘medical missions’ of doctors in exchange. It should not be surprising that AMLO has gifted oil to the Díaz-Canel regime in Cuba. Díaz-Canel was the guest of honor at Mexico’s Independence Day celebrations in 2021, and AMLO has inveighed frequently against U.S. policy toward Cuba for years. It is clear the Mexican president feels an ideological affinity toward the Cuban president as…”

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A sister publication of the Inter-American Dialogue’s daily Latin America Advisor, the weekly Energy Advisor captures fresh analysis from business leaders and government officials on the most important developments in oil and gas, biofuels, the power sector, renewables, new technologies, and the policy debates shaping the future of energy in the Western Hemisphere and beyond. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.


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Gene Kuleta

Editor
P. 202.463.2920
E. gkuleta@thedialogue.org

Nili Blanck

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