Exxon Mobil CorporationNYSE: XOM

Exxonmobil wins US supreme court backing in Cuba asset dispute

· Issued by Exxon Mobil Corporation

The US Supreme Court ruled that Exxonmobil can continue pursuing claims against Cuban state-owned entities over assets nationalised after the 1959 revolution, a decision that could encourage additional lawsuits under the Helms-Burton Act, AFP reported.

The court found that Cuban government agencies and state companies cannot invoke sovereign immunity protections in the case, allowing Exxonmobil’s long-running litigation to proceed in lower courts. The dispute centres on assets once owned by Standard Oil, a predecessor of Exxonmobil, including refineries, terminals and more than 100 service stations that were nationalised following Fidel Castro’s rise to power.

A US federal agency determined in 1969 that the seizure caused losses exceeding $70mn at the time, an amount now valued at more than $1bn. The ruling was supported by six conservative justices, while three liberal members of the court dissented.

The decision marks another legal victory for US claimants seeking compensation for property confiscated by Cuba during the early years of the revolution. The Supreme Court said the 1996 Helms-Burton Act overrides sovereign immunity for Cuban state entities in such cases, removing a key defence previously used to challenge claims.

The case returns to lower courts, where Exxonmobil will continue its effort to recover damages. Cuban entities had argued that the Foreign Sovereign Immunities Act protected them from being sued in US courts.

The judgment comes amid renewed tensions between Washington and Havana. The US has maintained an economic embargo on Cuba since 1962, while President Donald Trump has expanded pressure on the island since returning to office, including tighter sanctions and restrictions targeting Cuba’s energy sector.

The ruling follows another Helms-Burton-related decision issued in May, when the Supreme Court upheld a judgment requiring four major cruise operators to pay $109mn each to a US company linked to a Havana port facility confiscated by the Cuban government in 1960.

Legal analysts expect the Exxonmobil case to be closely watched because it may broaden the scope for future claims against Cuban state-owned enterprises, potentially increasing legal and financial risks for entities operating on the island.

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