Daily Management Review

EC warns the US against arresting European assets in Cuba


The EU authorities have notified the US Chamber of Commerce that they will confiscate the assets of US companies on their territory if American firms try to seize the assets of European companies in Cuba through court, Bloomberg reported with reference to a written notice sent to the US Chamber of Commerce.

A letter to the European Commission addressed to the Vice-President for International Relations of the US Chamber of Commerce, John Murphy, referred to by Bloomberg, states that "the damage from the confiscation of assets can be recovered by arresting assets owned by American plaintiffs in the EU, people who own these assets or their intermediaries. "

The notice to the US Chamber of Commerce also notes that in the event of lawsuits from US companies for assets in Cuba, shares owned by these companies in European firms may be arrested.

In mid-April 2019, Trump’s administration decided to allow individuals and companies to file lawsuits against Cuban authorities and companies operating in Cuba for confiscated property. EU countries are the largest investors in the Cuban economy, and these claims can affect the business of many European companies.

The potential threat of lawsuits of American companies against assets in Cuba, which were nationalized during the 1959 revolution, could be an additional reason for the deterioration of EU-US relations. 

source: bloomberg.com