Obama announces steps to normalise US ties with Cuba

The US had severed diplomatic ties with Cuba decades ago imposing a series of sanctions on them

In a historic decision, President Barack Obama today announced a series of steps aimed at normalising relations with communist-ruled Cuba, with which the US had severed diplomatic ties decades ago imposing a series of sanctions on its island neighbour.

The steps being taken include instructions to re-establish the US Embassy in Cuban capital Havana, relaxing of trade and travel restrictions and review of Cuba as a state sponsor of terrorism.

"We will end an outdated approach that for decades has failed to advance our interests. And instead we will begin to normalise relations between our two countries. Through these changes, we intend to create more opportunities for the American and Cuban people and begin a new chapter among the nations of the Americas," Obama said in a television address to the country.

"Though this policy has been rooted in the best of intentions, no other nation joins us in imposing these sanctions and it has had little effect beyond providing the Cuban government with a rationale for restrictions on its people," he said.

"Today Cuba is still governed by the Castros and the Communist Party that came to power half a century ago. Neither the American nor Cuban people are well served by a rigid policy that's rooted in events that took place before most of us were born," he added.

"Consider that for more than 35 years, we've had relations with China, a far larger country also governed by a communist party. Nearly two decades ago, we reestablished relations with Vietnam, where we fought a war that claimed more Americans than any Cold War confrontation," said the US president as he explained to the American people his decision to change US policy on Cuba.

The announcement came as two American citizens, one of them a spy, was released by Cuba in a prisoner swap.

"All, these 50 years have shown that isolation has not worked. It's time for a new approach. I've instructed Secretary (John) Kerry to review Cuba's designation as a state sponsor of terrorism. This review will be guided by the facts and the law," he said.