Cuba Sanctions: What Shipping Needs to Know The U.S. has taken a tougher stance on Cuba with the issue of Executive Order 14404 on May 1, 2026. For shipping interests, this is an important shift because it introduces potential exposure for non-US operators. What’s changed? Until recently, US sanctions on Cuba mainly affected US persons. Foreign companies could still trade with Cuba, subject to certain limits (e.g. the 180-day rule), without broad secondary sanctions risk. E.O. 14404 changes that. It allows the US to sanction parties operating in key Cuban sectors, including: (i) energy; (ii) metals and mining; (iii) financial services; and (iv) defence and security. It also covers anyone providing “material assistance” to those parties. Why this matters for shipping This brings Cuba closer to sanctions regimes used for Russia, Iran and Venezuela – where non-US shipping interests can face risk. While not automatic, the risk of a sanctions violation is very much increased. Operating in these sectors may attract US scrutiny. Dealing with designated parties could lead to sanctions exposure. Indeed, supporting a sanctioned entity (directly or indirectly) may be enough to amount to non-compliance.  Early designations OFAC has already designated several entities, including GAESA (financial sector) and MOA Nickel SA (metals and mining). Both have historically appeared in Cuba-related trades, making this directly relevant for owners and charterers. What hasn’t changed Not everyone in these sectors is automatically sanctioned. Existing exemptions under US Cuba regulations still apply via General License 1. However, the overall risk profile has increased. Practical takeaways Going forward, Members should screen all counterparties and carefully identify the ownership interests they are dealing with. It is also imperative to check whether cargo or trade touches the listed sectors. As always, Members must remain alert to indirect exposure, especially through charterers, rece