US Expands Embargo On Cuba As Secondary Sanctions Pose New Risks For Foreign Entities

The United States expanded the scope of its sanctions on Cuba this month, creating a broad risk of exposure for third-country entities and exacerbating the country’s ongoing fuel crisis. Cuba’s economy is at its lowest point in decades amid restrictions on foreign energy imports. The island’s energy grid has repeatedly collapsed in recent months, resulting in nationwide blackouts, and Havana recently announced that the island’s fuel supply has run out. The new sanctions regime now covers any foreign companies and institutions engaging in transactions involving Cuba. The risks for international businesses have already forced companies to recalculate, with Toronto-based Sherritt pulling out of a mining joint venture on the island.