Cuba denies links to US-seized biodiesel shipments bound for the island

2 min read
Cuba denies links to US-seized biodiesel shipments bound for the island
PrimeXBT Editorial Team
Reviewed by PrimeXBT

Cuba's energy minister denied any government link to biodiesel shipments the US seized in September. The US says the cargoes ran under contracts involving a sanctioned Cuban state energy trader. The minister also said the island is pushing ahead with solar power while US fuel imports cover little of its needs.

Cuba's top energy official denied any link between the communist-run government and Cuba-bound biodiesel shipments seized by US authorities in September. He rejected US claims that the island nation was involved in those deals.

US says 90 shipments were seized

The US said last week it had seized 90 separate shipments of biodiesel worth nearly $3 million under contracts involving a sanctioned Cuban state energy trader known as ENETEC. Washington describes the seizures as part of a crackdown on what it alleges are illegal fuel shipments to the island.

Energy and Mines Minister Vicente de la O Levy said he had no knowledge of the shipments intercepted by the US Department of Homeland Security. He told Reuters in an interview in Havana: "We can assure you that there was no contract of any kind with ENETEC S.A."

Fuel imports fall short

The US oil blockade, which began after the detention of Venezuelan President Nicolás Maduro in January, has vastly worsened Cuba's existing energy crisis. The US allows fuel exporters to ship gasoline and diesel to the island's nascent private sector but prohibits such shipments to the government.

Imports from US companies have soared in recent months but remain a fraction of what the economy needs, de la O Levy said. He ventured that the amount entering the country does not cover 3% of its fuel needs.

Nickel mining and solar farms

Cuba intends to stay in nickel and cobalt mining, de la O Levy said, but stiffened US sanctions leave significant barriers to restarting production. Any restart would require talks on fuel and spare parts supply and on payments for exports and production inputs.

On renewables, he said 144 solar farms with a combined capacity of 1,418 megawatts have been installed over the past several years, assuring baseline daytime electricity production despite the blockade. Around 40% of Cuba's electricity comes from domestic oil.

Source: Reuters via Investing.com

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