Canadian Companies Fear Major Losses if Cuban Communist Regime Falls

by John Hayward

Cuban Deputy Foreign Minister Carlos Fernandez de Cossio Dominguez on Friday sought to convince Canada to prop up the fading Communist regime in Havana, arguing that Canadian companies could lose billions from nullified contracts if the regime falls.

De Cossio praised Cuba’s “important trade relations” with Canada and the hefty investments Canadian companies have made in Cuba.

“Despite the fact that we do not have a coincidence in all the political and international positions, we have always known how to solve our problems, our differences, and work with them based on dialogue and based on mutual respect,” he said.

The Cuban official blamed America’s energy blockade for starving Cuba of the fuel it needs for “everything from energy for hospitals, for homes, for education, for industry, for the production of food, for agriculture, for transportation, for medical care, for the livelihoods of people.”

De Cossio claimed Cuba’s infamous nationwide blackouts are “not a result of Cuban inefficiency, not as the result of Cuba mismanagement of the electrical grid, but because the United States is depriving Cuba of fuel.”

De Cossio, formerly Cuba’s ambassador to Canada, was responding to Ottawa warning Canadian firms away from making new investments in Cuba last week, due to the island’s “ongoing liquidity crisis” and the collapse of its power grid.

“While opportunities exist, Cuba is not a suitable market for first-time exporters or companies seeking quick sales. In a context marked by a deep economic crisis, the main challenge for foreign companies is securing payment,” the Canadian trade commission advised.

The Canadian statement went out of its way to praise Cuba’s long history of doing business with Canada, and it applauded the Communist police state for making moves toward privatization over the past few years, but noted that “imports must still be handled through state-run specialized foreign trade companies” which often demand lengthy payment terms for their letters of credit.

Cuba’s private companies, on the other hand, usually pay in full — but they often employ “intermediaries or relatives abroad, which can raise transparency and compliance concerns.”

“Over the medium to long term, Cuba may offer opportunities for experienced investors willing to manage higher risks in exchange for long-term potential, provided reliable offshore payment mechanisms can be secured,” the Canadian bulletin said.