Cuba’s Díaz-Canel pushes for urgent structural changes to economic model

Cuban President Miguel Díaz-Canel has declared that his administration must focus on implementing “immediate” and urgent transformations to the island’s economic and social model.

These remarks, delivered during a Council of Ministers meeting, arrive at a time when Cuba is feeling the acute strain caused by the latest oil embargo and the cessation of petroleum shipments from Venezuela following the US attack on that South American nation in January.

According to reports from state media cited by the AP, Díaz-Canel stated, “We must focus immediately on implementing the urgent and most necessary transformations that need to be made in the economic and social model.”

According to state media, Díaz-Canel noted that the effort to transform Cuba’s economic and social model hinges on issues such as the autonomy of the business sector and municipalities, as well as the restructuring of the state apparatus, the government, and various institutions.

Per the report, the president called on municipalities to manage matters such as direct foreign investment, economic partnerships between state and non-state sectors, and investments involving Cubans living abroad.

Prime Minister Manuel Marrero Cruz stated that Cuba’s priorities are focused on food production and changes to the island’s electrical grid, as severe shortages and disruptions in fuel supplies persist.

State media reported that Minister of Energy and Mines Vicente de la O Levy remarked that, despite the distribution of solar panels to physicians, teachers, and children, progress in developing transition strategies by municipalities remains slow.

The minister emphasized that municipalities must possess a sustainability strategy based on their own resources.

Last month, Cuba implemented strict fuel conservation measures, including the suspension of some public transportation services and the transition of classes to an online format.

Last week, the US Treasury Department slightly eased restrictions on Venezuela’s oil sales to Cuba.

In addition to its energy woes, Cuba is battling a sharp increase in US sanctions that, between March 2024 and February 2025, deprived the island of approximately $8 billion in revenue.

According to government statistics, this loss represents an increase of approximately 50% compared to the previous period.