In the very forum where the Cuban government vowed to create a "more modern, agile, and transparent" environment for foreign investment, the regime admitted on Tuesday that it cannot ensure a steady fuel supply, not even for international businesses.
This acknowledgment came from the vice prime minister and Minister of Foreign Trade and Foreign Investment, Óscar Pérez-Oliva Fraga, during the opening of the VIII Investment Forum in Havana.
The official announced that foreign-owned companies will have the ability to purchase fuel directly in foreign currency without any restrictions. If Cuba lacks availability, these companies will be permitted to import their own fuel, as reported by Canal Caribe.
Pérez-Oliva stated that the government is working to prevent this situation, yet he openly admitted that there remains a possibility of being unable to supply fuel despite the usual prioritization of foreign investment.
In a nation plagued by power outages exceeding 10 hours, endless lines at service stations, and an electrical system on the brink of collapse, this message underscores the severity of the energy crisis, even affecting investors.
Partial Dollarization and Dual Currency System for Investor Satisfaction
The official also disclosed the creation of a "differentiated scheme" to allow foreign investments to operate more flexibly in both pesos and foreign currency, as part of a "partial dollarization" process advancing within Cuba's economy.
As daily life for Cubans falls apart under unaffordable prices and wages that fail to cover even a week's worth of food, the government is betting on attracting capital by relaxing previously inviolable policies.
According to the minister, some joint ventures are achieving "historic results," a statement starkly contrasting with the everyday reality faced by ordinary Cubans, who deal with empty markets, inflation, and blackouts.
Another announcement at the forum stated that investors will now have the autonomy to choose their staff, either through direct hiring or via the state employment agency. This has been a longstanding demand from foreign companies that have criticized the hindrances in personnel selection.
Moreover, companies are now allowed to pay bonuses in foreign currency from their profits, strictly through banks and only if the funds originate from external revenues.
These announcements come just days after the government imposed a financial freeze, blocking the withdrawal and repatriation of foreign currency for foreign companies and even embassies, a measure that has further eroded trust in the island's business climate.
Understanding Cuba's Economic Challenges
Why is the Cuban government allowing foreign companies to import their own fuel?
The Cuban government is allowing this due to its inability to guarantee a consistent fuel supply, even for foreign businesses, amid a severe energy crisis.
What is the significance of the "partial dollarization" mentioned by the Cuban government?
The "partial dollarization" refers to a new economic strategy allowing foreign investments to operate using a mix of pesos and foreign currencies, aimed at making investment conditions more flexible and appealing.