Cuba faces nickel crisis after Trump pressure on Canadians
Canadian company Sherritt (Photo: Sherritt)
Cuba's economy is one step away from collapse due to the decision of Canadian company Sherritt International Corp. to withdraw. The mining giant is closing its nickel operations under powerful pressure from Washington, according to Bloomberg.
Read also: US moves to flood Cuba with free internet in major influence push
Sherritt's exit cuts off the country's access to hard currency from metal exports. Sherritt is not only about mining — the company owns a third of the shares of Energas SA. This joint venture produces electricity, oil, and gas on the island.
Omar Everleny Pérez, former director of the Cuban Center for Economic Research, calls this decision a devastating blow.
This is why the cooperation of the Canadians with Energas is critically important for Cuba:
- Providing about 10% of all national capacity;
- Generating backup energy for stable grid operation;
- Supporting old thermal power plants after frequent breakdowns.
Without Canadian support, blackouts will become chronic. Pérez emphasizes that the biggest problems will arise precisely in electricity generation. This could lead to a complete shutdown of industrial facilities in Havana and other cities.
Main "metal" blow
Nickel has always been the heart of Cuban exports as a source of hard currency for Havana. However, US sanctions have already managed to bleed this industry dry. Statistics show a rapid decline in revenues.
If in 2021 nickel brought Cuba $788 million, then after Trump’s pressure and sanctions, the revenue dropped to $88.6 million.
Sherritt had been operating in Cuba since the 1990s. The company ignored the American embargo for decades. Its capitulation today is a significant concession to the power of US sanctions, the article notes.
What else you should know about the US-Cuba confrontation
The other day, Trump revealed to the public his plan for how he would take over Cuba. The American president said that on its way back from Iran, a US aircraft carrier will get within a hundred meters of Cuba and Havana will announce its surrender.
Trump has also imposed new sanctions on high-ranking Cuban officials. This is also part of a months-long campaign of pressure on Havana.
And according to Politico sources, the US may wait for a full change of power in Cuba, but some high-ranking officials will still have to resign.
