A recent ruling by the Havana Provincial Popular Court has mandated the judicial liquidation of the International Economic Association Contract known as Constructora PILAR II. As part of this decision, the Italian company FLLI PIERANTOZZI S.P.A. is to receive 2,676,192 Cuban pesos, as outlined in a judgment published in the last Monday’s Extraordinary Official Gazette.
The court's Commercial, Administrative, Labor, and Social Security Chamber accepted a lawsuit from the state-run Empresa Constructora Caribe against the Italian firm, headquartered in San Benedetto del Tronto, Marche, Italy.
FLLI PIERANTOZZI S.P.A. did not respond to the lawsuit and was declared in default, paving the way for a unilateral decision by the Cuban court favoring the state entity.
This contractual relationship dates back to September 25, 2008, when FLLI PIERANTOZZI S.P.A. entered into an agreement with the former Construction, Repair, and Maintenance Company (COREPMA), contributing transportation and construction equipment, machinery, and office furniture and supplies.
In 2009, then-Minister of Economy and Planning, Marino Murillo Jorge, dissolved COREPMA via Resolution 360, transferring its assets, rights, and obligations—including this contract—to Empresa Constructora Caribe.
The Italian firm's contributed assets were valued at 2,676,192 Cuban pesos by INTERMAR S.A. in March 2013, a valuation accepted by FLLI PIERANTOZZI’s legal representative, Massimiliano Pierantozzi, in February 2016.
At the official Cuban exchange rate of 24 pesos per dollar, the liquidation amount is approximately 111,508 U.S. dollars.
This protracted legal process commenced with ordinary termination proceedings in 2019, with an initial judgment on June 7, 2024, terminating the contract and initiating the liquidation process.
Finalized on October 30, 2025, the liquidation judgment was delivered by magistrates Janet Loret de Mola Pino, Mercedes Carina Torres Hidalgo—who penned the ruling—and Martha Irasema García Gavilán.
The decision rests on the 2014 Foreign Investment Law (Law 118) and the 2024 Decree 325, which govern the disposition of assets provided by foreign entities when such contracts conclude.
Empresa Constructora Caribe maintained reserved funds at Banco Metropolitano S.A.'s Branch 250 to pay the defendant for its contract contribution, effectively concluding the contract, according to the judgment.
This case underscores the mounting challenges faced by foreign investors in Cuba amidst a profound economic crisis, prompting several European companies to scale back or exit the island, as recent conflicts between the Cuban government and Italian businessmen have shown.
Italy ranks among Cuba's leading European investors, active in sectors such as energy, tourism, and construction, including projects related to GAESA, which have also sparked disputes with Italian partners.
Once the ruling is final, the court will order the contract’s removal from the Commercial Registry, marking its definitive end. However, parties have 10 days from notification to file a cassation appeal, as the ruling stipulates.
Additionally, no legal costs will be imposed, in a case where the Italian company never provided legal representation in Cuban courts, raising questions about the actual assurances for foreign investors on the island despite the regime’s promises.
Key Insights into the Cuban Court's Ruling Against Italian Company
Why did the Cuban court rule in favor of the state entity?
The court favored the state entity because the Italian company did not respond to the lawsuit, resulting in a default judgment.
What was the original contract between the Italian company and Cuba?
The contract, signed in 2008, involved FLLI PIERANTOZZI S.P.A. providing construction and transportation equipment, as well as office supplies, to the Cuban entity COREPMA.
What led to the legal proceedings against the Italian company?
Legal proceedings began after COREPMA was dissolved and its obligations, including the contract, were transferred to Empresa Constructora Caribe, which later sued the Italian firm.
How does this case reflect the situation for foreign investors in Cuba?
The case highlights the growing difficulties foreign investors face in Cuba, exacerbated by economic turmoil and legal uncertainties, leading many European firms to reconsider their presence on the island.