The official distributor for Habanos in Germany, Austria, and Poland, 5th Avenue Products Trading GmbH, has temporarily stopped distributing Cuban cigars amid a broader investigation. The decision follows the indictment and arrest of Chinese billionaire Chen Zhi, founder of Prince Holding Group, which owns half of Habanos S.A.
Zhi was charged in October 2025 with wire fraud conspiracy and money laundering related to forced labor operations in Cambodia. After U.S. Treasury sanctions, the European Union imposed its own restrictions in July, halting dealings between 5th Avenue and Habanos S.A.
It is uncertain when new shipments will resume. Zhi, who still owns nearly 30% of Habanos, is currently incarcerated in China and may face the death penalty, putting his role as a shareholder in jeopardy.