New US rules allow infrastructure projects, movie shoots in Cuba

The latest changes come as Washington and Havana move closer toward normal relations, having restored diplomatic relations last year after more than five decades of Cold War-era animosity.

Although most US trade with Cuba remains banned under the economic embargo, President Barack Obama has been using executive authority to allow commerce that is not specifically banned by Congress.

The changes announced on January 26, the third round of such measures, reflect Washington's stated goal of meeting the needs of the Cuban people while also creating business opportunities for US companies.

US officials stressed that the practical impact will depend on Cuban economic liberalization, as previous US attempts at promoting commerce have largely stalled. Cuba in turn has complained about the lack of credits and a ban on using the US dollar.

A Cuban flag flies attached on a vintage car in Havana September 18, 2015.

US banks may now finance authorized exports except for agricultural commodities and reexports of non-US goods. Previously such trade had to be paid for by cash in advance or financed through third-country banks.

The new rules would also allow US companies on a case-by-case basis to be involved in the construction of infrastructure deemed as directly beneficial to the Cuban people.

A Treasury Department statement mentions water treatment and supplying energy as examples. Cuba has a host of infrastructure needs following decades of US sanctions and the fall of the Soviet Union, its longtime former benefactor.

However, a general policy of denying licenses will apply to exports for use by state-owned entities that primarily generate revenues for the Cuban government and for use by the Cuban military, police, intelligence and security services.

The new regulations also grant freer rein for US companies to shoot movies and television programs.