HAVANA (AP) 鈥� U.S. Secretary of State Marco Rubio on Friday defended the Trump administration’s decision , the largest of which is against GAESA, or Grupo de Administraci贸n Empresarial S.A., a business conglomerate operated by the Cuban Revolutionary Armed Forces.
In addition to GAESA and its leader, the sanctions announced Thursday included Moa Nickel, a Cuban joint venture with Canada’s Sherritt International, which immediately announced it would withdraw from the business, ending a 32-year presence on the island.
The May 1 executive order and the new designations announced May 7 significantly expand the legal authority through which the U.S. government can levy sanctions on third-country nationals and firms, explained Lee Schlenker, a research associate at the Quincy Institute鈥檚 Global South program.
鈥淣ot only are they subject to having their assets frozen but their U.S. accounts as well as their travel to the U.S., that of their shareholders, investors or employees,鈥� said Schlenker. 鈥淭his is bound to have an extremely significant impact of the presence of foreign companies鈥� in Cuba.
Economist Pavel Vidal, a Cuba expert at Pontificia Universidad Javeriana, told The Associated Press that the measures are 鈥渧ery concerning鈥� for an economy already 鈥減ractically paralyzed.鈥� The U.S. has blocked fuel shipments to Cuba since January, further escalating the island’s yearslong economic crisis. Vidal noted that the new sanctions would likely deter GAESA鈥檚 remaining partners, saying that 鈥渧ery few will risk defying them.鈥�
The new measures amount to 鈥渢otal isolation,鈥� said Vidal, driven by the fear they instill in international banks, insurers and corporations.
As an expert who has analyzed GAESA鈥檚 internal documents, Vidal noted that the conglomerate鈥檚 deep reach into nearly every sector of the Cuban economy makes any connection to the island a potential liability under the new U.S. rules.
According to reports analyzed by Vidal, GAESA commands nearly 40% of Cuba鈥檚 gross domestic product. As of early 2024, the conglomerate held $14.5 billion in liquid reserves, with annual revenues triple the size of the entire Cuban state budget.
Family ties with the Castros
Established in the 1990s under military control, GAESA was the Cuban Armed Forces鈥� strategic response to the economic collapse that followed the Soviet Union鈥檚 fall and the tightening of U.S. sanctions in place at the time.
Despite being state-owned, GAESA鈥檚 accounts are exempt from audits by the Office of the Comptroller General. Gladys Bejerano, the entity鈥檚 director, admitted to this lack of oversight in a 2024 interview; shortly thereafter, she retired.
For years, until his death in July 2022, Luis Alberto Rodr铆guez L贸pez-Calleja served as GAESA’s general manager. As the son-in-law of , he was a pillar of the family 鈥� a legacy continued by his son, Ra煤l Guillermo Rodr铆guez Castro. While the younger Castro officially serves as his grandfather鈥檚 chief bodyguard, he has recently emerged as a pivotal intermediary in
This week’s sanctions also added Ania Guillermina Lastres to the U.S. blacklist. As the successor to L贸pez-Calleja, she currently serves as GAESA鈥檚 executive president, overseeing the conglomerate鈥檚 vast international financial interests.
Based on the limited information available, GAESA oversees dozens of retail outlets 鈥� selling everything from food and clothing to home appliances 鈥� as well as a sprawling service network that includes car rentals and travel agencies. Notably, it also manages Cuba鈥檚 financial institutions, currency exchange bureaus, and the administration of .
In remarks to the press Friday, Rubio said the sanctions were not on the Cuban people and he referred to GAESA as a company that 鈥渋s taking anything that makes money in Cuba and illegally putting it into the pockets of a few regime insiders.鈥�
Cuban authorities maintain that the sanctions constitute 鈥渃ollective punishment鈥� designed to strangle the island鈥檚 economy, arguing the Trump administration鈥檚 policies show a disregard for the welfare of the Cuban people in favor of political leverage.
The new sanctions on Havana come under the weight of that has caused sweeping water and power outages along with severe gas and water shortages.
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