Sherritt International reversed its plan to unwind Cuban business after consulting advisers and government officials, the nickel producer announced as it scrambles to respond to tougher US sanctions on the island.

The about-face matters because Sherritt had signaled intent to exit the Cuban market, where regulatory risk had grown sharply. Tighter US sanctions made that move seem like the safer play, but further dialogue with stakeholders pushed the company back toward maintaining its presence rather than cutting ties.

Investors now face uncertainty around how tougher US sanctions will affect Sherritt's revenue streams. Staying in Cuba means navigating political headwinds, while exiting would forfeit a foothold in a market tied to the island's resource extraction. The nickel producer chose the risk of compliance over the certainty of a clean break.