CUPET

1960

On August 6, 1960, the Cuban government, under President Osvaldo Dorticós Torrado and Prime Minister Fidel Castro, nationalized all American owned oil refineries located within Cuba's national borders. Along with sugar factories and mines, Cuba seized approximately $1.7 billion in U.S. oil assets. This nationalization of property resulted partially from U.S. President Dwight D. Eisenhower's decision to cancel all oil exports to Cuba. Eisenhower's decision came in the wake of the Cuban Revolution and its establishment of a communist state on the island. This forced the Cuban government to rely on Soviet oil imports. Eisenhower ordered American oil companies to refuse to refine Soviet oil and then the Cuban government nationalized the refineries as a result.

Following the successful Cuban Revolution (1953–59), a socialist state was established in Cuba. In total, Cuba nationalized roughly 6,000 American owned properties. The many individual oil and gas facilities were compacted into a single, state controlled company, The Cuba Oil Union (Spanish: Unión Cuba-Petróleo) in 1992. Despite attempts at negotiation, no property was ever returned to the American companies and they have yet to receive any compensation from the Cuban government. Diplomatic relations between the United States and Cuba quickly deteriorated and the first in a series of embargoes was placed on Cuba in October 1960.