Cuba unveils economic reforms amid US sanctions

Cuban President Miguel Díaz-Canel announced a sweeping package of economic reforms on Friday, June 12, 2026, aimed at decentralizing the state-dominated economy and opening key sectors to greater private and foreign investment. The announcement came just hours after the United States imposed a full financial blockade on Cuba's state oil company, Unión Cuba-Petróleo (CUPET), intensifying the long-standing U.S. embargo.

The reforms, part of a government initiative called the 2026 Economic and Social Program, represent a significant shift toward greater economic liberalization. Central measures include granting municipalities and state-owned companies expanded authority over foreign trade and currency management, reducing their dependence on central government intermediaries. The plan also aims to attract investment from Cubans living abroad, ease restrictions on private small and medium-sized enterprises, and allow foreign companies to lease agricultural land.

In a televised address, President Díaz-Canel framed the changes as a necessary internal restructuring to address a deep economic crisis characterized by chronic shortages, high inflation, and severe energy problems. "These...