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Sherritt Moves to Exit Key Cuba Operations After Expanded US Sanctions

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Sherritt International plans to dissolve key Cuba joint ventures after expanded US sanctions threatened its ability to continue operations, the company said in a Friday statement.

After the US administration widened sanctions against Cuba through a May 1 executive order, Sherritt decided to halt direct involvement in Cuban joint venture operations, the company said.

Sherritt owns a one-third stake in Energas, a Cuban joint venture that converts raw natural gas into electricity supplied to Cuba's national power network.

In addition, the company holds interests in two oil and gas exploration production-sharing contracts as well as a related drilling services agreement.

Sherritt said it plans to surrender its Energas interest as well as its oil, gas and drilling assets while expecting no compensation for those operations.

Dissolution procedures under the Energas agreement could take months or even years, prompting the company to seek accelerated relief from the Alberta Court of King's Bench at a May 19 hearing.

Sherritt's interests also include its 50% stake in the Moa nickel and cobalt joint venture with Cuba's General Nickel Company, known as GNC.

According to the company, exiting Cuban operations could help reduce risks linked to banking access and auditor availability following the expanded US sanctions.

The company said it has already informed Cuban authorities about the planned separation and will continue working with stakeholders to complete the process.

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