Toronto-based Sherritt International Corp, one of Cuba’s largest foreign investors with a nickel and cobalt joint venture at Moa in eastern Cuba, said on May 5 it is consulting advisers and stakeholders to evaluate its Cuban business after President Donald Trump signed an executive order on May 1 expanding US sanctions to cover energy, defense, mining, metals, finance, and security sectors.
The order targets nearly any non-US person or entity doing business in Cuba and adds to the February 2026 fuel cut that already forced Sherritt to pause Moa operations. Sherritt’s Q1 2026 results are due May 12 and Cuba currently owes the company at least US$344 million in unpaid debts.
Key Points
— Trump executive order May 1 expanded Cuba sanctions to energy, mining, and finance.
— Sherritt May 5 statement: consulting advisers and stakeholders on Cuba next steps.
— Moa joint venture paused since February 2026 due to fuel cuts.
— Cuban state debt to Sherritt: at least US$344 million as of early 2026.
— 2025 production: 25,240 tons of nickel and 2,729 tons of cobalt.
The Trump Executive Order
The Rio Times, the Latin American financial news outlet, reports that Trump’s May 1 executive order broadened Cuba sanctions to apply to nearly any non-US individual or entity doing business with the island, with key sector exposure spanning energy, defense, mining, metals, finance, and security. Cuba has been under broad US economic sanctions since the 1960s, but the new order substantially raises the risk profile for foreign companies still operating with Cuban state-linked entities. The administration’s stated goal is to apply intense economic pressure on the Cuban government, with Trump previously removing Venezuelan leader Nicolás Maduro in early January and blocking Russian fuel deliveries to Cuba.
Sherritt’s May 5 statement, issued after market close, said the company is “consulting with advisers and stakeholders to evaluate the potential implications of the executive order and is considering steps in relation to the Corporation’s interests in Cuba”. The company has been one of Cuba’s most prominent foreign investors for decades through its Moa Nickel SA joint venture with the state-run General Nickel Company SA (Cubaníquel). Sherritt also holds a one-third stake in Energas SA, a Cuban-Canadian energy joint venture that generates electricity from natural gas for the Cuban grid.
Operational Context
Sherritt mines cobalt and nickel at Moa in eastern Cuba and processes the metal at its refinery in Fort Saskatchewan, Alberta, with the operations halted at Moa since mid-February 2026 after Trump’s January executive order created a de facto fuel blockade. Production was already deteriorating with 2025 output of 25,240 tons of nickel and 2,729 tons of cobalt, down from 30,331 tons and 3,206 tons in 2024 due to the energy crisis, supply delays, and the impact of Hurricane Melissa in October 2025. Cuban state entities owed Sherritt at least US$344 million in unpaid bills as of early 2026.
China’s Rising Role in Cuban Nickel
As Sherritt’s operational presence has weakened, China has emerged as Cuba’s largest nickel-product buyer and an increasingly visible operational backstop, with 2024 imports of “nickel mattes” and other Cuban nickel intermediates reaching US$53.1 million according to trade data cited by 14ymedio. Industry observer William Pitt has linked Sherritt’s deterioration to a wider crisis combining the collapse of Cuba’s economic model, dependence on subsidized energy, and import vulnerability. The structural shift positions Beijing as the practical commercial partner Havana needs to keep the nickel industry running while Sherritt steps back.
The Sherritt review lands amid broader US-Cuba diplomatic motion, with Pope Leo XIV recently meeting Secretary of State Marco Rubio in a “friendly and constructive” discussion that touched on Latin American policy, while Cuba’s chronic electricity, gasoline, diesel, and jet-fuel shortages have intensified through 2026. The combination of fuel cuts, expanded sanctions, mounting unpaid debts, and China’s parallel positioning makes Sherritt’s current Cuba exposure increasingly difficult to defend to Toronto and Alberta shareholders. Sherritt will report Q1 2026 results on May 12, when management is expected to clarify the path forward for the Moa and Energas operations.
| Element | Detail |
|---|---|
| Trump executive order | May 1, 2026 (Cuba sanctions expansion) |
| Sherritt response statement | May 5, 2026 |
| Q1 2026 results | May 12, 2026 |
| Cuba JV partner | General Nickel Co (Cubaníquel) |
| Moa operations status | Paused since February 2026 |
| Cuban state debt | At least US$344M |
| 2025 nickel output | 25,240 tons (vs 30,331 in 2024) |
| 2025 cobalt output | 2,729 tons (vs 3,206 in 2024) |
| China imports 2024 | US$53.1M (Cuban nickel intermediates) |
Connected Coverage
For broader US-Latin America sanctions and engagement context, see our coverage of the post-Maduro investor surge into Caracas under expanded US re-engagement and our analysis of the Trump administration’s hardened US-Latin America policy stance through Acting AG Blanche.
What Happens Next
- May 12, 2026: Sherritt Q1 2026 earnings; expected guidance update on Cuba operations.
- Through Q2: Possible Sherritt decision on Moa joint venture and Energas stake.
- Watch: Cuban government response and any Chinese formal commercial commitments to Moa.
Frequently Asked Questions
What did Trump’s May 1 order do?
Trump’s May 1, 2026 executive order broadened US sanctions on Cuba to apply to nearly any non-US individual or entity doing business with Cuban state-linked sectors including energy, defense, mining, metals, finance, and security. The order substantially raised the risk profile for foreign companies still operating with Cuban state entities, building on Cuba‘s existing 60-plus years of US sanctions. Trump’s stated objective is to apply intense economic pressure on the Cuban government, with related earlier moves including the de facto fuel blockade in January and the removal of Venezuelan leader Maduro.
What is Sherritt’s Cuba exposure?
Toronto-based Sherritt operates the Moa nickel and cobalt mine in eastern Cuba through a joint venture with state-run General Nickel Company SA (Cubaníquel) and processes the metal at its refinery in Fort Saskatchewan, Alberta. The company also holds a one-third stake in Energas SA, a Cuban-Canadian gas-to-power joint venture supplying the Cuban grid. Production was 25,240 tons of nickel and 2,729 tons of cobalt in 2025, down from 30,331 and 3,206 tons in 2024 due to the energy crisis and Hurricane Melissa, while Cuban state entities owe Sherritt at least US$344 million.
When are Sherritt’s Q1 results?
Sherritt is scheduled to report Q1 2026 results on May 12, 2026, with management expected to provide a guidance update on Cuba operations including potential paths forward for the Moa joint venture and the Energas stake. The Q1 print will reflect the February 2026 Moa pause and any early effect of the May 1 sanctions expansion. The company indicated in February that the Alberta refinery had stockpile coverage to operate normally through approximately mid-April 2026.
What is China’s role in Cuban nickel?
In 2024, China was the largest destination for Cuban “nickel mattes” and other nickel intermediates, with US$53.1 million in import value, according to trade data cited by 14ymedio. As Sherritt’s operational presence has weakened through the 2026 fuel cuts and sanctions expansion, China has emerged as the practical commercial partner Cuba needs to maintain its nickel industry. The trend positions Beijing as an increasingly strategic backstop for Havana while Sherritt steps back from active operations.
Updated: 2026-05-07T17:00:00Z by Rio Times Editorial Desk