Biden Administration Sanctions Cuban Regime Following Crackdown on Protests

Jul. 27, 2021

On July 22, 2021, the Biden administration announced new sanctions targeting elements of the Cuban government which it deemed to be responsible for a recent crackdown on anti-government protestors in the country. Protests have broken out in Cuba, it should be noted, in response to a reported shortage of food and medicine and in response to the Cuban government's response to the COVID-19 pandemic.

The new US sanctions are aimed specifically at the division of the Cuban Ministry of the Interior and the head of the Cuban military, both of which will now be listed pursuant to the Cuban Assets Control Regulations on the Office of Foreign Asset Control (OFAC) list of Specially Designed Nationals (SDNs). According to President Biden, who took a fairly harsh tone in the announcement, “This is just the beginning – the United States will continue to sanction individuals responsible for oppression of the Cuban people.”

This move comes as the Biden administration has faced calls from members of Congress to both toughen the US stance towards Cuba and to relax it. In response, the White House has established working groups designed to evaluate the current US policy towards remittances, as well as the potential impact of reestablishing consular services on the island. Establishing consular services would allow Cubans to seek a US visa while in Cuba rather than having to visit a US embassy in a third country, while allowing for remittances would permit Americans to send money to relatives in Cuba in the face of food and medicine shortages. According to White House officials, the administration is only open to remittances if it can guarantee that the money will go directly to the Cuban people, rather than being intercepted by or funneled to Cuban the government.

While many hoping for a shift towards normalized US-Cuba relations have felt optimistic during the early days of the Biden administration, the recent imposition of targeted sanctions in conjunction with President Bidens recent stern tone may be tempering expectations. Those hoping for a quick shift in policy would be wise to remember that rocky trade relations have represented the status quo between the US and Cuba for the better part of 60 years. In September of 1962, in response to a variety of Cuban actions including Castrol regime sales of weapons to Latin American countries and Cuban weapons purchases from the Soviet Union, President John F. Kennedy announced an embargo on trade between the US and Cuba. The following month the Cuban Missile Crisis took the world to the brink of nuclear war, cementing US-Cuba relations for the foreseeable future along the way.

While to date the embargo has remained in place through 12 US presidential administrations, the situation has not always remained entirely stagnant. As recently as 2015 the Obama Administration began the implementation of what came to be known as the “Cuba Thaw.” While President Trump later reversed course, reimposing measures against Cuba and designating the island nation as a state sponsor of terrorism, the Obama administration demonstrated that US-Cuba relations may not necessarily be set entirely in stone.

If you have any specific questions regarding the Cuban Assets Control Regulations or OFAC compliance do not hesitate to contact an attorney at Barnes, Richardson & Colburn LLP.