During a recent statement, Cuba's ambassador to the United Nations, Ernesto Soberón Guzmán, emphasized a "two-way street" approach regarding compensation negotiations for properties seized from American citizens and companies after the 1959 Revolution. He linked any potential agreement to a reciprocal easing of the U.S. embargo.
The remarks to the AP coincide with the first high-level diplomatic talks between Washington and Havana in a decade. These discussions began on April 10, when a U.S. State Department delegation, sent by Marco Rubio, discreetly arrived in Havana—marking the first official U.S. government visit to Cuba since 2016.
Soberón Guzmán stressed that any compensation to U.S. individuals and businesses must be paired with acknowledgment of Cuba's counterclaims for embargo damages, which Havana estimates in the billions of dollars. "It's not just about this claim, but also about our claim because of the economic impact of the embargo," the diplomat told the Associated Press.
The U.S. Justice Department has certified 5,913 valid claims for confiscated properties in Cuba since 1959, with an estimated value between $9 billion and $10 billion, including accrued interest at an annual rate of 6%.
In March, Cuban Deputy Minister Carlos Fernández de Cossío suggested that Havana might consider a lump-sum compensation model, where payments would be made to the U.S. government to handle individual claims—a method Cuba previously employed in agreements with Canada, Spain, France, and the United Kingdom, but never with the U.S.
Nonetheless, the Cuban regime firmly rejected another major U.S. agenda point: the release of political prisoners. Soberón Guzmán dismissed any "ultimatums" on this issue, asserting that internal matters concerning detainees are not up for discussion, and drew parallels between the Cuban and U.S. legal systems to justify the stance.
The U.S. had set a two-week deadline—expiring this Friday, April 24—for Cuba to free high-profile political prisoners, including artist Luis Manuel Otero Alcántara and rapper Maykel Osorbo, who have been imprisoned since the July 11, 2021 protests.
The State Department issued a stern warning: "The Cuban regime must stop playing games while direct talks are underway. They have a limited window to strike a deal."
Underlying these negotiations is Cuba's crippling energy crisis: the nation requires between 90,000 and 110,000 barrels of oil daily but produces only about 40,000 internally, leading to power outages in some areas that exceed 40 hours.
In January, former President Donald Trump signed an executive order imposing secondary tariffs on countries exporting oil to Cuba, prompting Mexico—via Pemex—and Venezuela to halt shipments, worsening the humanitarian crisis on the island.
This energy vulnerability is the primary factor driving the Cuban regime to the negotiation table, though Soberón Guzmán attempted to maintain a firm stance: "Our first choice—what we truly desire—is a successful dialogue with the U.S. government," he stated, before warning that, in the event of U.S. military aggression, Cuba "is ready to respond."
Negotiations and U.S.-Cuba Relations
What are the main conditions Cuba has for compensation negotiations?
Cuba's main condition for negotiating compensation is a reciprocal easing of the U.S. embargo, along with acknowledgment of Cuba’s counterclaims for embargo damages.
Why is the energy crisis a significant factor in Cuba's negotiations with the U.S.?
Cuba's energy crisis is a critical factor because the country needs significantly more oil than it produces, leading to severe power outages. This vulnerability pushes Cuba to seek negotiations with the U.S. to alleviate the situation.
What are the implications of the U.S. deadline for releasing political prisoners?
The U.S. deadline for releasing political prisoners is a point of contention, with Cuba rejecting any ultimatums. This affects the progress of talks, as the U.S. considers the release of prisoners a significant agenda item.