The United States implemented financial sanctions on a large business conglomerate managed by Cuba’s military and a joint mining venture involving a Cuban-Canadian partnership. This move is part of the Trump administration’s efforts to increase pressure on Cuba’s communist regime by targeting foreign investment sources. Following the capture of Venezuela’s leader, a close ally of Cuba, in January, President Donald Trump indicated that Cuba would be the next target. This led to a block on most oil shipments to Cuba, exacerbating power shortages on the island.
Recently, Trump signed an executive order expanding U.S. sanctions against Cuba, a decision criticized as “coercive” by President Miguel Díaz-Canel. One of the main targets under this order is Grupo de Administracion Empresarial S.A. (GAESA), a military conglomerate controlling a significant portion of Cuba’s economy, along with its Executive President Ania Guillermina Lastres Morera. The U.S. Secretary of State, Marco Rubio, accused Cuba of facilitating intelligence operations for nations hostile to the U.S., a claim that Cuba denies.
Additionally, the sanctions extended to Moa Nickel SA, a partnership between Sherritt International Corp based in Toronto and Cuba’s state-owned nickel company. This joint venture, which mines nickel and cobalt, was identified as a key source of foreign exchange for Cuba. The Trump administration has also imposed strict limitations on U.S. travel and remittances to Cuba and discouraged regional allies from engaging Cuban doctors, a program that generates significant revenue for Cuba.
Sherritt International Corp, one of the few companies operating at scale in Cuba despite existing U.S. sanctions, announced the suspension of its direct involvement in joint venture activities in Cuba. The company is arranging for the repatriation of its expatriate employees in Cuba and has urged its partners to do the same. While refinery operations in Fort Saskatchewan, Alta., are ongoing, Sherritt confirmed that there is adequate feed material to sustain operations until mid-June.
Cuba’s Foreign Ministry condemned the new U.S. sanctions as “ruthless economic aggression” and a violation of international law. The ministry called on the international community to oppose this escalation of U.S. efforts to exert control over Cuba’s future. The U.S. has persistently demanded Cuba to liberalize its state-controlled economy, compensate for expropriated properties, and conduct free and fair elections. However, Cuba has affirmed that its socialist system is non-negotiable, accusing the U.S. of hinting at military intervention and attributing its economic challenges to decades of U.S. sanctions.
Senator Rubio, following discussions at the U.S. Southern Command in Florida, emphasized the necessity of political and economic reforms in Cuba. He underscored that the Trump administration will continue its actions until such reforms are implemented. The recent sanctions align with the administration’s stance on addressing threats posed by Cuba’s communist regime to national security in the region. These measures coincide with UN experts’ concerns about the impact of the fuel blockade on Cuba, labeling it as “energy starvation” with severe repercussions on the country’s development and human rights.
