Cuba To Allow Cuban-American Investment And Property Ownership
Cuban authorities have announced that members of the Cuban diaspora will soon have its permission to invest in businesses and own companies and property on the island, lifting prohibitions on Cuban-American participation in the economy that have been in place since the early 1960s. In an interview with NBC News, Cuban Deputy Prime Minister Oscar Pérez-Oliva Fraga stated that Cuba was "open to having a fluid commercial relationship with U.S. companies," as well as having a commercial relationship "with Cubans residing in the United States and their descendants."
Fraga, who also serves as minister of foreign commerce, said that Cuba’s intention was to create a “dynamic business environment” to encourage significant foreign investment. "This extends beyond the commercial sphere," Fraga stated. "It also applies to investments—not only small investments, but also large investments, particularly in infrastructure.” He indicated that the government would soon share details of the new investment initiative in a special presentation to the nation.
Under restrictions imposed by the longstanding U.S. trade embargo, any investments from the United States would have to be licensed by the U.S. Treasury Department.
The announcement comes as the Cuban economy is showing signs of possible collapse following the United States’ move in January to cut Venezuelan oil exports to the island, as well as pressuring other oil-exporting nations such as Mexico to halt petroleum shipments to Cuba. Yesterday the Cuban electrical energy grid suffered a “complete disconnection,” the Ministry of Energy and Mines reported, leaving the entire country without electricity, aside from the few pockets that have generator power. Controlled blackouts have become commonplace in Cuba, sometimes lasting for days, curtailing economic activity across the island. In a press conference last week, Cuban President Miguel Díaz-Canel stated that several months had passed since Cuba had received a shipment of oil.
At the same press briefing, Díaz-Canel confirmed that Cuba has been holding back-channel talks with representatives of the Trump administration. Multiple press reports indicate that Secretary of State Marco Rubio has been communicating directly with Raúl Castro’s 41-year-old grandson, Col. Raúl Guillermo Rodriguez Castro. The Miami Herald reported that one secret meeting focusing on economic reforms in Cuba took place in a hotel room during the annual meeting of the Caribbean Community nations that both Rubio and Rodriguez Castro attended on February 25 on the island of St. Kitts. The Trump administration is also seeking to force Díaz-Canel to step down from power, the New York Times reported this week. “The Americans have signaled to Cuban negotiators that the president must go,” sources said, “but are leaving the next steps up to the Cubans.”
President Trump has openly and repeatedly demanded that Cuban-American entrepreneurs be allowed to freely return to the island and has warned that Cuba faces U.S action if the Cuban government does not come to an agreement with Washington soon. Speaking to reporters on Air Force One Sunday night, Trump stated that "I think we will pretty soon either make a deal or do whatever we have to do."
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