China lends Cuba a helping hand

The FT News Briefing explores the deepening energy crisis in Cuba, where a near-total oil blockade by U.S. President Donald Trump has pushed the island's power grid to the brink of collapse. With Venezuela's oil exports cut off after Nicolás Maduro's capture and no alternative supply routes, Cuba has turned to China for critical solar energy infrastructure, receiving one gigawatt of solar capacity over the past year. While this has provided a lifeline, daily electricity deficits remain at around 1,500 megawatts, and most Cubans cannot afford solar panels due to extreme prices—up to 100 times the official minimum wage. Meanwhile, the European Union faces mounting fiscal pressure as member states deploy costly energy subsidies to combat rising fuel prices amid the Middle East conflict, raising concerns about inflation and unsustainable debt. EU officials warn against broad, permanent support that could reverse progress on green energy, urging targeted, temporary measures and exploring windfall taxes on energy firms. The private equity sector is also struggling, with buyout volumes down 36% in Q1 2026, driven by AI disruption and geopolitical uncertainty. The episode paints a picture of global energy insecurity, with vulnerable nations like Cuba relying on geopolitical allies, while Europe grapples with balancing economic relief and fiscal responsibility.