Tuesday, 02 January 2024 12:17 GMT

Cuba's Sixth Blackout Deepens Island's Worst Crisis


(MENAFN- The Rio Times) Key Points

- Cuba's entire national power grid collapsed Monday, the sixth island-wide blackout in 18 months and the first since the U.S. effectively cut off the country's oil supply

- President Díaz-Canel confirmed Friday that Cuba has received no oil shipments in three months, with Venezuelan supplies severed after the U.S. captured President Maduro in January

- Trump said at the White House he believes he will have the "honor of taking Cuba," while Havana signaled openness to allowing overseas Cubans to invest and own businesses on the island

The latest Cuba blackout plunged the entire island of roughly 10 million people into darkness Monday as the national electricity grid suffered a total collapse - the most severe power failure since Washington effectively shut off the country's oil supply three months ago. Cuba's Ministry of Energy and Mines reported a "complete disconnection" of the national electrical system and said it was investigating causes, while crews began the slow process of restarting generation units. The Rio Times, a Latin American financial news outlet, examines how the deepening energy crisis is reshaping the geopolitical dynamics between Havana, Washington, and the wider Caribbean.

Why This Cuba Blackout Is Different

Island-wide blackouts have become grimly routine - this is the sixth in just 18 months, and the third major grid failure since December. But what distinguishes the current Cuba blackout from its predecessors is the near-total absence of fuel to restart the system. Previous recoveries relied on diesel-powered generation units to bootstrap the grid, gradually feeding enough electricity to thermoelectric plants - the backbone of Cuban power generation - so they could resume full operation. That process typically takes days. Without fuel reserves, however, the restart path is far narrower, as the ministry's electricity director Lázaro Guerra warned last week.

The root cause is an oil embargo by other means. After the U.S. military operation that captured Venezuelan President Nicolás Maduro in January, Washington backed interim president Delcy Rodríguez and Venezuelan oil shipments to Cuba ceased entirely. Trump then threatened tariffs on any country that continues selling petroleum to the island, effectively warning off Mexico and Russia, Cuba's other major suppliers. President Díaz-Canel confirmed Friday that Cuba has not received a single oil delivery in three months and is surviving on solar power, natural gas, and thermoelectric plants that burn increasingly scarce heavy crude. Cuba produces roughly 40% of its own petroleum, but output has been insufficient as aging infrastructure crumbles.

Economic and Social Fallout

The energy crisis has cascaded through every sector of Cuban life. The government has reduced school hours, postponed surgeries for tens of thousands of patients, cut public transportation, and cancelled major cultural and sporting events. Fuel prices on the black market have reached $9 per liter - meaning a full tank costs more than most Cubans earn in a year. Airlines including American Airlines, Delta, JetBlue, and Air Canada have suspended flights to the island due to aviation fuel shortages. Internet traffic has fallen to one-third of normal levels, according to network monitoring firm Kentik. Cuba's economy has contracted more than 15% since 2020.

The blackouts have fueled rare public unrest. Residents of Morón took to the streets Saturday to protest power cuts and food shortages, and anti-government demonstrators attacked a Communist Party office - an extraordinary act of defiance on the island. In Havana, residents have staged "cacerolazos," banging pots and pans in a traditional Latin American form of protest. The government blames U.S. sanctions for the crisis; independent analysts say decades of underinvestment in the power sector compounded by the current oil blockade created a "perfect storm of collapse."

Trump, Talks, and What Comes Next

Speaking at the White House Monday, Trump escalated his rhetoric, saying he believes he will have the "honor of taking Cuba" and that he "can do anything" with the island, calling it a "very weakened nation." The Trump administration is demanding the release of political prisoners and movement toward political and economic liberalization in exchange for sanctions relief, and officials have signaled they want Díaz-Canel to leave power. Cuba has rejected the framing but has nonetheless entered talks with Washington. Days after those discussions began, Cuba's trade minister told NBC News the government plans to allow overseas Cubans - including those in the United States - to invest in and own businesses on the island, a potentially historic policy shift for the communist government. Whether the opening proves sufficient to alter Washington's posture remains the defining question for the Caribbean's largest nation.

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The Rio Times

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