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Mismanagement and sanctions are taking a heavy toll on Cuba. <\/p>\n
Yamil Lage \/ AFP <\/p>\n
The Cuban economy is in tatters. And Swiss companies are finding it harder than ever to do business with the island. Bank transfers are becoming increasingly difficult, as financial institutions are wary of US sanctions.\n<\/p>\n
This content was published on <\/p>\n
September 1, 2026 – 09:00\n<\/p>\n
Trade between Cuba and Switzerland now amounts to just a few million Swiss francs, and Switzerland\u2019s main exports to Havana are paper and cardboard. While revenue stood at over CHF2.7 million ($3.4 million) in 2025, this amounted to barely CHF1 million in the first half of 2026.<\/p>\n
Revenue from Swiss watch exports shrank from CHF1.4 million in 2025 to just over CHF357,000 in the first half of 2026. Meanwhile, Swiss pharmaceutical exports have fallen to just four figures: exports in this sector came to just under CHF9,000 from January to June 2026.<\/p>\n
According to the Swiss-Cuban Chamber of Commerce (SwissCubanCham), this is not due to a lack of business interest. \u201cWhen a Swiss company does business with Cuba, bank orders, invoices or guarantees can be issued by state banks. But the company almost never manages to collect the payments,\u201d explains Ursin Mirer, president of SwissCubanCham. It often fails because payments cannot actually be processed.<\/p>\n
One of the problems lies in Cuba\u2019s state-dominated economic system and the chronic shortage of foreign currency. This is why Cuban entities are regularly unable to settle their debts to foreign companies.<\/p>\n
However, it is also due to the United States tightening its long-standing sanctions against Cuba last year. Financial service providers in Europe and Latin America are therefore looking to minimise their risk by carrying out as few transactions as possible with countries affected by US sanctions. This is referred to as de-risking: financial service providers tend to reduce or terminate business relationships if they are considered to be at potential risk of sanctions. This apparently goes so far that a Swiss businessman or businesswoman might even travel to Havana with a suitcase full of cash to pay local partners.<\/p>\n
Consequently, fewer Swiss companies are interested in economic relations with Cuba. This has become evident to SwissCubanCham. \u201cToday we have only around 40 member companies, compared with 60 or 70 a few years ago. The companies don\u2019t feel protected,\u201d Mirer says.<\/p>\n
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Trinidad, where many residents are facing severe economic hardship, in May 2026. The decline in visitor numbers has been exacerbated by fuel shortages linked to sanctions against Cuba, which are contributing to recurring power cuts and transport problems across the country. <\/p>\n
Magdalena Chodownik \/ AFP <\/p>\n
When Cuba becomes a banking risk: the case of Swiss tour operators<\/p>\n
One example of a Swiss company that specialises in Cuba and is grappling with difficulties is Caribbean Tours, a Zurich-based tour operator that has specialised in trips to Cuba for the past 26 years. \u201cIn recent years, we brought around 15,000 tourists to Cuba every year. Today, there are practically none left, resulting in a complete collapse in our turnover,\u201d explains owner Reto R\u00fcfenacht.<\/p>\n
But R\u00fcfenacht is not only facing problems in his direct business dealings with Cuba. He is also experiencing a knock-on effect from international financial controls and US secondary sanctions.<\/p>\n
Caribbean Tours supplies holiday packages to major European tour operators such as DERTOUR Group and Kuoni. According to R\u00fcfenacht, however, the risk associated with Cuba also affects activities that have no direct connection to the island. \u201cEvery one of our bank transfers is automatically linked to Cuba by the banks\u2019 control systems, even when they involve completely different destinations such as Mexico or Belize,\u201d he says.<\/p>\n
To be able to pay its local partners on the island, the company therefore sometimes has to resort to unusual solutions. \u201cEuropean customers pay us in Swiss francs in Switzerland, but to get the funds to Cuba, at the moment I sometimes take the cash with me in my suitcase,\u201d R\u00fcfenacht explains. \u201cThe money has to arrive directly on the island so that we can pay for local services, tour guides and hotels.\u201d<\/p>\n
European companies also under pressure<\/p>\n
European companies doing business with Cuba face the same problems. \u201cThe United States claims territorial jurisdiction as soon as a transaction has a link to its financial system,\u201d explains Cedric Ryngaert, professor of public international law at Utrecht University. \u201cThe mere involvement of an American correspondent bank handling clearing in US dollars may be sufficient. This can cause a European transaction to fall under US jurisdiction.\u201d<\/p>\n
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More <\/p>\n
Swiss diplomacy\n <\/p>\n
Cuban diplomats eye Switzerland in bid to ease US economic pressure <\/p>\n
This content was published on <\/p>\n
Jul 11, 2025 <\/p>\n
As tensions rise again between Cuba and the US, Cuban diplomats are quietly looking to Switzerland to help restore a constructive dialogue. <\/p>\n
<\/p>\n Read more: Cuban diplomats eye Switzerland in bid to ease US economic pressure To protect European companies, there is the Blocking Statute, an EU regulation that prohibits European companies from complying with extraterritorial US sanctions. In practice, however, the effectiveness of this regulation is limited.<\/p>\n \u201cThe Blocking Statute does not work perfectly,\u201d Ryngaert explains. \u201cIt prohibits European companies from complying with US sanctions. However, many banks still prefer to minimise risks, so they terminate or restrict certain business relationships to avoid potential consequences on the US market.\u201d<\/p>\n According to Ryngaert, many financial institutions therefore attribute such decisions to general internal risk assessments, rather than openly stating that they are following US guidelines. The result is that, for many European companies doing business with Cuba, financial channels are becoming more complicated, more expensive and less secure.<\/p>\n When even Panama is no longer an option<\/p>\n For years, some Swiss companies have been trying to find alternative ways to process payments with Cuba. One of the key hubs was Panama, which historically played a significant role in Cuban financial transactions.<\/p>\n \u201cIt was still possible to work with certain banks and use Panama to transfer money to Cuba. Or, conversely, to send money from Cuba to Panama and subsequently receive payments via Spain or other countries,\u201d explains Mirer of SwissCubanCham.<\/p>\n But this channel, too, is now effectively closed. With growing pressure from US sanctions and international financial controls, Panama\u2019s banks have severely restricted or even ceased their activities relating to Cuba. \u201cToday, it\u2019s not possible to conduct business with Cuba via Panama. What used to be possible is now hardly possible at all,\u201d Mirer says.<\/p>\n \n More<\/p>\n More <\/p>\n Global elections\n <\/p>\n Switzerland closes a chapter on strengthening Cuban autonomy <\/p>\n This content was published on <\/p>\n Mar 31, 2023 <\/p>\n Development work in Cuba has given autonomy to local communities \u2013 and arguably helped the regime to manage more efficiently. <\/p>\n <\/p>\n Read more: Switzerland closes a chapter on strengthening Cuban autonomy A market without guarantees<\/p>\n To revitalise economic relations between Switzerland and Cuba, other structural conditions would need to be put in place. \u201cFirst and foremost is legal certainty, followed by genuine protection for foreign companies and, finally, the question of currency,\u201d Mirer explains.<\/p>\n Small to medium-sized Swiss businesses, which are less able to manage late payments and financial difficulties, have gradually reduced or ceased their activities. Those remaining are primarily international conglomerates such as Nestl\u00e9 and Roche, or a handful of smaller companies that are persevering.<\/p>\n Edited by Benjamin von Wyl. Adapted from German by Katherine Price\/ts<\/a><\/p>\n \n More<\/p>\n More <\/p>\n Inside SWI\n <\/p>\n Our newsletter on geopolitics <\/p>\n Switzerland in a fast-moving world. Join us to follow the latest Swiss foreign policy developments. We offer the perfect immersive package. <\/p>\n
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