United States Expands Sanctions to Include Cuban Oil Companies

The United States announced on Thursday the imposition of sanctions on Cuban oil companies, marking the latest round of punitive American measures against Havana. This move follows days after Washington imposed sanctions on Cuban President Miguel Diaz-Canel and several associated individuals and entities, according to US Treasury Department data. Those sanctions targeted five entities and four individuals, including Cuba's "Ministry of the Revolutionary Armed Forces." In a related development, the Cuban Central Bank declared the suspension of payments made via "Visa" and "Mastercard" in the country. This decision came after an unnamed foreign bank, which processes these transactions on the island, terminated its relationship with Cuba's state financial services company, "Fincimex." The Central Bank clarified that the foreign bank would cease dealings with "Fincimex." This development follows new sanctions imposed by the administration of US President Donald Trump on the "Gaesa" group, linked to the Cuban military establishment, of which "Fincimex" is a part. These measures warn of the potential exposure of foreign banks and companies that continue to deal with the "Gaesa" group to US sanctions. Indeed, four hotel management companies from Spain, Canada, and Indonesia had already announced plans to withdraw from hotel facilities they managed in partnership with the Cuban group. Consequently, foreign currency payments in Cuba will be restricted to cash, local prepaid cards, and payment cards issued by Russia's "Mir" system and China's "UnionPay."