Stop cars: UAZ suspended work in Cuba due to energy crisis
Due to the energy crisis, UAZ has suspended the assembly of its cars in Cuba, the company told Izvestia. They noted that they expect work to resume after the situation with the shortage of electricity is resolved. However, so far the fuel crisis on the island is only getting worse. It already affects the backbone sectors of the economy. For example, production of nickel and cobalt, the country's key exports, is halting. The main reason for the crisis is the oil blockade by the United States. On March 22, the Cuban armed forces began preparations for a possible invasion, although the country's authorities confirmed the fact of negotiations with the American administration. What is happening in Cuba now and what could be the way out of the crisis — in the material of Izvestia.
Which industries are affected by the Cuban energy crisis
March was the darkest month for Cuba since the beginning of the year. The Republic has already experienced three blackouts. Once again, the entire territory of the country was left without electricity on March 21, after the generator at the Nuevitas thermal power plant failed. The assembly plant of the Ulyanovsk Automobile Plant (UAZ) was among the industrial enterprises that suffer from a shortage of electricity.
— Currently, production, like at most enterprises in the country, has been suspended. This is primarily due to severe restrictions on electricity supply on the island," the UAZ press service told Izvestia. — Together with the Cuban side, we expect a prompt resolution of the situation and the resumption of work.
The company was launched in Havana in April 2025. It engaged in the large-scale assembly of the Patriot and Pickup models, adapted to local climatic and road conditions. The planned production volume of Russian cars at the first stage was up to 500 cars per year, with a full load of 1.5 thousand. In 2026, the company intended to increase output, but the energy crisis prevented this.
The lack of electricity stops the work of industrial enterprises, affects the living conditions on the island. So, interruptions stop the centralized water supply, people stand behind it in queues and carry it home in buckets. Surgeries are being canceled in hospitals. In Havana, only 44 of the more than 100 garbage trucks are operating, and in some cities, according to local media reports, garbage has not been cleaned for 10 days.
Cuba does not have its own fully-fledged production of passenger cars. Therefore, the launch of the UAZ assembly was a breakthrough for the country, even if the project is focused more on the needs of government agencies, the military industry and agriculture. But the energy crisis raises the question of the fate of the local automotive industry.
"Mass production is unrealistic in the current conditions, because the country's energy system is unstable, disruptions affect the entire industry," Alexander Kudryashov, senior lecturer at the Department of Financial and Investment Management at the Financial University under the Government of the Russian Federation, explained to Izvestia. — There is a chance to preserve auto assembly in Cuba, but only in a niche format, for example, from imported machine kits, in small batches and if the company has its own energy storage system.
According to Armen Tadevosyan, Adviser on the strategic development of the energy agenda of the Association of European Businesses, in the current conditions, industrial enterprises in Cuba have two difficult but realistic scenarios to maintain their work. First, if a factory or assembly shop gets the status of a strategic facility. In this case, it will be supplied with electricity on a priority basis, including through solar panels, backup generators or local fuel sources. Secondly, the same car manufacturers may shift their focus from mass production of cars to repair and adaptation of the existing fleet, the expert added.
On the island itself, people use public transport (buses), motorcycles and scooters more often. The Cuban car market itself is very small. In 2023, only about 3.9 thousand new cars were registered in the country. For comparison, in Russia in 2025 this figure exceeded 1.3 million, and in China, the largest car market in the world, more than 27.3 million passenger cars were bought in 2024.
Under these conditions, the suspension of production of Russian SUVs is not critical at the level of the country's economy. But this is just the tip of the iceberg. Cuba's key enterprises, such as nickel and cobalt producers, are also suffering from energy shortages. This is one of the backbone sectors of the country's economy. In 2023, mining products accounted for 44% of Cuban exports.
The industry is represented by two major players — the state—owned company Empresa de Níquel and the joint venture Moa Nickel S.A., where half of the shares are owned by the government and the other by the Canadian Sherritt International. In 2025, this company produced more than 25 thousand tons of nickel and almost 3 thousand tons of cobalt. And in February, it suspended operations due to lack of fuel.
Nickel is mainly needed to create stainless steel and batteries, cobalt is needed for aircraft engines, hard alloys and wear—resistant materials. Even a short-term pause results in losses of tens of millions of dollars for Cuba, which the country previously allocated for the purchase of food and spare parts.
Russian companies Zarubezhneft, Novikombank and Cosmos Hotel Group also operate in Cuba. Izvestia sent a request to these structures asking them to clarify how the energy crisis affected their work.
Will the United States attack Cuba
The current crisis began in February, shortly after the US invaded Venezuela. This country was the main supplier of fuel to the island. But after the capture of Nicolas Maduro, Trump announced that Venezuela would stop supplies. And so it happened. Moreover, Trump promised to impose duties on any country that would provide the island with oil. After that, Mexico, the second most important supplier, refused to export oil to Cuba.
The Trump administration motivated the tightening of sanctions against Cuba with the desire to change the government on the island. According to Bloomberg, the White House's goal is to make the republic financially dependent on the United States. And for the sake of its tasks, Washington is ready to organize a military invasion — this scenario was previously allowed by Trump.
"I would like to believe that the parties will be able to agree on acceptable terms, where everyone will concede something from their side, but neither side will cross red lines," said Egor Lidovskaya, Director General of the Hugo Chavez Latin American Cultural Center.
Cuban President Miguel Diaz-Canel officially confirmed the negotiations with the United States on March 13. According to The New York Times, during the negotiations, the Trump administration issued an ultimatum: the president of the republic had to resign. At the same time, according to the publication, the United States did not insist on the complete dismantling of the country's political system.
Cuba alone will not be able to defeat the US army, and no one on the world stage is in a hurry to support the island militarily, Yegor Lidovskaya believes. On March 22, the Cuban armed forces began preparations for a possible US invasion. The Foreign Ministry of the Republic noted that Havana believes to the last that Washington will not attack, but the country's authorities will be naive if they do not prepare for aggression.
President of Cuba Miguel Diaz-Canel
The expert recalled that Trump often says things that are not true. Before the invasion of Iran, there were also numerous statements that a deal was about to happen, and there was an attack. In this way, Trump masks his true goals, trying to knock off the opponent's focus and conduct a surprise invasion. The same fate may await Cuba, the expert does not exclude.
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