The Cuban government has racked up a debt exceeding $277 million with Sherritt International, a Canadian firm that for over three decades served as its largest foreign mining partner. This was confirmed in an official statement by the company, which announced its final departure from operations on the island.
This substantial debt is a result of years of accumulated unpaid dues, highlighting the Cuban state's systemic inability to fulfill its financial obligations.
The primary component of this debt is the balance owed by the state-owned General Nickel Company S.A. (GNC) to Sherritt for their joint nickel and cobalt operations in Moa, Holguín. By the end of 2025, this debt reached $277 million.
Additional amounts owed stem from accounts receivable related to Energas S.A.—a joint venture in electricity generation—and CUPET, the Cuban state oil company.
This financial obligation did not appear overnight. Over several years, the Cuban state postponed payments, leading to the negotiation of an alternative settlement mechanism in October 2022 known as the "cobalt swap." Instead of making payments in currency, Cuba was to deliver refined cobalt over five years, from 2023 to 2027, to settle $362 million Canadian in receivables.
The agreement fell through. By the end of 2024, the Cuban regime had fulfilled only about 25% of its commitments, showing even this in-kind payment method was beyond its capabilities.
In February 2026, the situation worsened when Cuban authorities informed Sherritt of a fuel shortage necessary to sustain production in Moa, leading to a suspension of operations amid the island's severe energy crisis.
The final blow arrived on May 1, 2026, when President Donald Trump signed Executive Order 14404, significantly expanding sanctions against Cuba and imposing secondary sanctions on foreign financial institutions dealing with blocked Cuban entities.
On May 7, the U.S. State Department designated GAESA—the Cuban military's business conglomerate—under this new authority, making it untenable for any foreign company to maintain ties with the island.
Faced with this situation, Sherritt declared the termination of all its Cuban operations and activated its dissolution clause with GNC. The plan entails Sherritt retaining sole ownership of the Saskatchewan refinery in Canada, while GNC would take over the Cuban mining operations.
However, because the value of the Cuban mine surpasses that of the Canadian refinery, the dissolution agreement requires GNC to pay Sherritt an additional market value equalization amount, on top of the $277 million already owed. The company acknowledges that "the only way to preserve its ability to conduct business is to invoke its dissolution rights without delay."
Regarding Energas, which contributes between 10% and 15% of Cuba's independent electricity generation capacity with its 506 megawatts, Sherritt will relinquish its stake without receiving any compensation. The same applies to its shared oil production contracts and drilling service agreements.
Sherritt's exit leaves the Cuban regime without its main foreign mining partner, burdened with an unpayable debt and no access to the Canadian refinery that processed its nickel and cobalt. The judicial process to expedite the dissolution is set for next Tuesday before the Alberta Court of King's Bench.
Frequently Asked Questions about Sherritt's Departure from Cuba
What led to the termination of Sherritt's operations in Cuba?
The termination was primarily due to the Cuban government's inability to meet financial obligations, compounded by expanded U.S. sanctions which made it untenable for foreign companies to maintain operations in Cuba.
How did the 'cobalt swap' agreement fail?
The 'cobalt swap' agreement failed because the Cuban regime could only deliver about 25% of the promised refined cobalt, demonstrating the impracticality of this payment method.
What are the consequences for Cuba after Sherritt's withdrawal?
Cuba loses its primary foreign mining partner, is left with an enormous debt, and lacks access to the Canadian refinery that processed its mineral resources, complicating its economic situation further.