Vol. 21, No. 1 January 2013 In the News Cuba eases travel rules for most people Goodbye, Alarcón as experts debate impact on migration Elder statesman Ricardo Alarcón, 75, no BY DOREEN HEMLOCK just a passport and an entry visa to the nation longer head of National Assembly; Este- avana’s new migration law, which takes they plan to visit, if an entry visa is required. ban Lazo may replace him ............Page 3 effect Jan. 14, relaxes restrictions on trav- But that’s where the questions start. The law Hel for most Cubans but also raises scores doesn’t recognize Cubans’ fundamental right to of questions — including its potential impact on travel, and Havana can deny a passport to any Election 2013 citizen on the grounds of “national security.” Is the balloting for and U.S. immigration policy. delegados diputados Analysts say the law likely will mean more Analysts want to see how broadly or narrowly a Cuban exercise in futility? ..........Page 4 the government applies its law. The Associated Cubans moving out of their homeland, some Press said Jan. 7 that doctors — long restricted through third countries such as Spain and Ecua- from making personal trips — will now be able Political briefs dor into the United States. Already, the number to travel freely. UN group urges Cuba to free Alan Gross; of Cubans obtaining legal U.S. residency hit a In contrast, political dissidents could continue Ex-Gitmo pensions continue ........Page 5 record in the past decade, surpassing 300,000. to be denied that same right. And it’s unclear How many more Cubans migrate will depend how Havana might treat scientists and others in partly on how other countries react to Cuba’s technical and sensitive fields, say analysts con- Economic report new law. Numbers improve a little, but government sulted by CubaNews. “This is a challenge to U.S. immigration poli- “That part of the law is quite troubling, is stingy with hard data ................Page 7 cy,” Chris Sabatini, policy director for the Amer- because it doesn’t really specify what are your icas Society, told Fox TV in a Jan. 4 interview. rights if you don’t have a passport,” said Jorge EXCLUSIVE MAP Havana’s migration reform, first unveiled Oct. Duany, who leads the Cuban Research Institute 16, eliminates the much-hated requirement for Two-page CubaNews map details every as- at Miami’s Florida International University. Cubans to obtain an exit visa to leave their coun- The new law also makes it easier for Cubans pect of the island’s economy .......Page 8 try. Instead, citizens wishing to travel will need See Migration, page 6 Provinces: Matanzas Matanzas is home to sugar-mill towns, oil Miami lawyers may fight $126m venture and Varadero beach hotels .........Page 10 Business briefs by Russia’s Zarubezhneft to drill for oil Golf-course projects on hold; Cuba expects BY VITO ECHEVARRÍA nationals who invested in pre-Castro Cuba oil 3.1 million tourists in 2013 ..........Page 13 ailed efforts to find oil off Cuba’s north- concessions. western coast led the Castro government Already, some are dismissing Gutiérrez’s Fto turn to old friends in Moscow. plans. Saving history “At some point, this group may win a judg- NYIT students help preserve Havana’s ar- Russian state oil giant Zarubezhneft currently ment in a Florida court against Zarubezhneft, chitectural gems; N.Y. group saves Cuban has an exploration concession off Cayo Santa but it will only be a hunting license,” said Uni- María in north-central Villa Clara province — in mural from wrecking ball ............Page 14 versity of Nebraska professor Jonathan Benja- an area 330 km east of Havana labeled Block L. min-Alvarado, who’s been following Cuba’s Zarubezhneft is planning to invest nearly $126 quest for oil. Bookshelf million in the venture, stressing its commitment He opposes U.S. statutes that allow lawsuits “Marketing Without Advertising,” “Sustai- in helping the Cubans. It has also been stringent against foreign entities dealing with Cuba, not- nable Urban Agriculture in Cuba” and “50 in avoiding complications with the U.S. trade ing that Gutiérrez and his clients “could extort embargo by choosing a shallow-water rig that Years of Revolution” ....................Page 15 people who were doing business” on the island. has no American-made components. Gutiérrez is best known for representing cli- While that means Zarubezhneft will probably ents who filed claims under Title III of the 1996 CubaNews (ISSN 1073-7715) is published monthly Helms-Burton Act, which bars foreign investors by CUBANEWS LLC. © 2013. All rights reserved. not encounter problems with U.S. authorities Annual subscription: $398. Nonprofit organizations: over its rig, a small team of Miami attorneys from “trafficking” in property confiscated by the $198. Printed edition is $100 extra. For editorial in- headed by Nicolás Gutiérrez wants to challenge Castro regime after 1959. quires, please call (305) 393-8760, fax your request the company’s Cuba presence on behalf of its Some years back, Gutiérrez sued a group of to (305) 670-2229 or email [email protected]. clients: descendants of Cuban exiles and U.S. See Zarubezhneft, page 2 2 CubaNews v January 2013 “On behalf of another similarly situated cli- enter the United States. Zarubezhneft — FROM PAGE 1 ent, Consolidated Oil and Gas, Total (France) Gutiérrez has tried to use Title IV in the international resort chains, including Spain’s and Sherritt (Canada) were put on notice — past to pressure these companies into legal Sol Meliá, Jamaica’s Superclubs and France’s with Sherritt sued in federal district court up settlements with varying results, due to occa- Club Med for building or running resorts on through the appellate level,” the lawyer said. sional lax State Department enforcement. beachfront property previously held by a “Furthermore, the National Association of “Sherritt eventually prevailed in court, on Cuban exile family, the Sánchez-Hills. Cuban Mineral and Petroleum Rightholders technical jurisdictional grounds, since their This time around, Gutiérrez wants to show was formed to defend the interests of Cuba’s U.S. and Cuban operations were adequately the Russians that Helms-Burton doesn’t just pre-confiscation legitimate owners, in a more insulated from each other by various corpo- apply to confiscated onshore properties — generalized united front.” rate firewalls,” said the lawyer. “Genoil and but also to 1950s-era Cuban oil concessions That group includes Diaz-Masvidal, Leyte Beau Canada offered us Title IV settlements, suspended by the Castro regime, including Vidal, Gutiérrez Valladon and other promi- which we deemed too low, given our large offshore areas. nent Cuban exile families. number of shareholders.” Gutiérrez and his team plan to use an un- With this track record, Gutiérrez’s team likely group of clients, shareholders of a TITLE IV COULD BE POTENTIAL WEAPON appears confident it can go after Zarubezhneft 1950s oil exploration firm called TransCuba, As before, such Helms-Burton lawsuits on Title IV grounds. His legal team is armed to do so. TransCuba was the largest contigu- have not proceeded under Title III because with a CVOVT concession map from 1957 ous oil concession holder in Cuba by the late the president — due to foreign policy con- which allegedly includes Block L, as well as 1950s, trading on both the New York and cerns — has leeway to suspend its enforce- other onshore and offshore areas of Cuba. Havana stock exchanges. ability every six months. And that’s exactly “We could absolutely put the Russian firm Before then, various Cuban oil concessions what has happened ever since its enactment on notice that any mineral activity conducted were held by an outfit called the Cuban during the Clinton administration. on that block would be considered trafficking Venezuelan Oil Voting Trust (CVOVT). However, Title IV, which is enforced by the in stolen property as per Helms-Burton.” “TransCuba earned a 50% interest in all of U.S. State Department, is non-suspendable Jorge Piñón, a Cuba oil expert with the Uni- CVOVT’s concessions in exchange for a mul- and bars such foreign executives and their versity of Texas, dismisses the significance of timillion-dollar payment and other terms to family members from being granted visas to See Zarubezhneft, page 3 invest certain amounts and maintain the con- cessions active,” said a member of the Gutiérrez legal team who spoke to CubaNews on condition he not be identified. “Later, many acres were farmed out to com- panies like Cuban Stanolind, Sulgraves and others. TransCuba held a 50% working inter- est in 15.4 million acres held under conces- sion by the CVOVT.” The firm was eventually confiscated by Fidel just after the revolution, rendering its stock worthless. TransCuba stock certificates are currently being sold on eBay as pre- Castro souvenirs, while current holders of both those shares — and those of CVOVT — are on the Foreign Claim Settlement Commis- sion’s certified claimant list in Washington. Cuba has lured oil prospectors since ’50s “Mineral rights have a well-accepted and iami lawyer Nicolás Gutiérrez’s Trust Co. (CVOVT), which mapped out legally recognized force majeure clause which interest in asserting the rights of both onshore and offshore oil concessions generally allow noncompliance with contract M throughout the island, despite the fact that terms when there is a greater force that pre- those holding pre-1959 oil conces- sions reveal a little-known aspect of Cuban offshore drilling technology at the time was vents it, and this would also stop the clock on still in its infancy . the concession period from running, or expir- economic activity. (see map above) Most newspaper articles on Batista-era Cuba oil expert Jorge Piñón of the Uni- ing,” said the Miami lawyer.