U.S. Policy Applies Sanctions on Cuban Military Conglomerate

The United States has reinstated sanctions on GAESA, the military conglomerate that controls roughly seventy percent of the Cuban economy. The Cuba Restricted List blocks transactions with the entity, and Title III of the LIBERTAD Act is again in force.

Executive Order 14404 authorized blocking sanctions on GAESA and foreign companies that support it. On May 7, the State Department designated GAESA itself and the Sherritt joint venture at Moa Nickel.

Cuba has been designated a State Sponsor of Terrorism. Officials stated the island served as an intelligence hub for migration flows and drug routes affecting American communities. Previous administrations reopened embassies, allowed direct flights, and permitted cruise lines between 2014 and 2017.

The regime used revenue from those activities, which flowed through GAESA, to suppress protests and restrict ordinary citizens from certain hotels.

Officials said the same approach previously used against Venezuela is being applied to Cuba. A small group of former officials, lobbyists, and academics continues to argue for lifting pressure. They are described in the report as architects of a policy that enriched GAESA and contributed to migration pressures.

Cuba remains ninety miles from Florida, where Cuban-American communities operate businesses and participate in elections.