Key facts
- The U.S. government has imposed new sanctions on five Cuban state companies.
- Three of the sanctioned entities are linked to Grupo de Administración Empresarial S.A. (GAESA), a conglomerate controlled by Cuba's Revolutionary Armed Forces.
- GAESA is believed to control nearly 40% of Cuba's gross domestic product and held $14.5 billion in liquid reserves as of early 2024.
- The sanctioned entities include Almacenes Universales S.A. (AUSA), Rafin S.A., Banco Financiero Internacional S.A., Geominera S.A., and Empresa Siderúrgica Jose Martí.
- Annalie Lilliam Rueda Cardero, daughter-in-law of former President Raúl Castro, was also sanctioned.
The U.S. government has imposed new sanctions on five Cuban state companies, a move that analysts predict will deter foreign investors and exacerbate the island's severe economic crisis. U.S. Secretary of State Marco Rubio announced the sanctions, targeting entities including three linked to Grupo de Administración Empresarial S.A. (GAESA), a conglomerate operated by Cuba's Revolutionary Armed Forces. GAESA is estimated to control nearly 40% of Cuba's gross domestic product and held $14.5 billion in liquid reserves as of early 2024.
Rubio stated that the sanctions aim to counter the "corrupt, brutal and anti-American Communist regime" which he accused of prioritizing its own control over the well-being of the Cuban people, diverting resources away from essential services. Cuba's foreign affairs minister, Bruno Rodríguez, rejected the sanctions, calling Rubio "dishonest and mendacious" and describing the U.S. actions as a "crime."
Michael Bustamante, a professor at the University of Miami, explained that the sanctions signal to foreign investors that engaging with these specific Cuban entities risks being banned from the U.S. financial system. Among the sanctioned entities are Almacenes Universales S.A. (AUSA), the government's primary logistics and warehousing company, which is crucial for the island's export and import system. Also targeted was Rafin S.A., believed to be GAESA's financial arm, and Banco Financiero Internacional S.A., a key institution for foreign investors. Geominera S.A., a state-owned mining company, and Empresa Siderúrgica Jose Martí, Cuba's largest raw steel producer, were also sanctioned, along with Annalie Lilliam Rueda Cardero.
These sanctions come shortly after Cuba announced significant economic reforms, including allowing the private sector to import goods directly. However, Bustamante noted that these reforms may not yet be operational. He warned that if companies avoid doing business with the sanctioned storage entities, it could disrupt the flow of goods and have humanitarian consequences. The U.S. administration's actions appear to offer no encouragement for Cuba's announced reforms, despite the island already grappling with blackouts, shortages, and a struggling healthcare system.