Envioscuba.com, a significant online platform used by individuals in the United States to send money, food, and clothing to relatives in Cuba, has announced it is ceasing operations by stopping the acceptance of new orders. This move comes as the U.S. administration intensifies sanctions aimed at restricting international financial support for businesses on the island.
Platform Cites Unforeseen Circumstances
The company stated on its website that it can no longer provide services due to reasons beyond its control, without offering further elaboration. While the exact date when new orders stopped being received is unclear, the platform confirmed that all previously approved orders and those currently in process will still be fulfilled.
The Associated Press was unable to contact envioscuba.com, as the website does not provide a phone number or email address for inquiries. The increased U.S. pressure includes sanctions targeting Cuba’s state-owned oil and gas company, President Miguel Diaz-Canel, and GAESA, a business conglomerate controlled by the Revolutionary Armed Forces of Cuba. GAESA oversees a diverse range of businesses, including car rentals, retail stores, and transportation companies.
Impact on Deliveries and Market Trends
Emilio Morales, president of the Miami-based Havana Consulting Group, which specializes in market strategies for Cuba, explained that platforms like envioscuba.com often do not ship products directly from the U.S. Instead, they coordinate sales and deliveries using products stored in GAESA warehouses within Cuba. Morales suggested that this business model makes such portals vulnerable to sanctions.
“The trend is for all of this to disappear, because GAESA is behind it all,” Morales stated, predicting that other similar platforms may also shut down to avoid potential sanctions for engaging in business with the Cuban government. The U.S. sanctions carry the threat of freezing U.S. assets of foreign companies and prohibiting travel for their investors and employees, potentially severing their access to the U.S. financial system.
The situation highlights the challenges faced by Cubans on the island, who are experiencing shortages of food and medicine, frequent power outages, and oppressive heat. Many rely on remittances and packages from family and friends in the U.S. for essential supplies and goods.
This development follows other recent withdrawals or limitations of operations by international companies in Cuba. Notably, the Spanish hotel chain Meliá announced it would cease operations at 15 of the 34 hotels it manages on the island, joining a growing list of businesses scaling back their presence in Cuba.
Norman Pearlstine is the Chief Editor of News Raise and focuses on Business news. His responsibility is to oversee the editorial content including business, commodities, personal investments and the stock market.
