U.S. Sanctions GAESA, Cuban Military-Linked Conglomerate
Secretary of State Marco Rubio announced sanctions on GAESA in a May 20 video address. The move targets a conglomerate that controls an estimated 40 to 70 percent of Cuba's economy and is run by the Cuban armed forces.
Washington ExaminerSecretary of State Marco Rubio announced sanctions against GAESA in a May 20 video address. He described the conglomerate as a "state within the state" that controls Cuba's economy and directs profits to a small elite. Rubio said GAESA, not the Cuban government, holds real power.
He stated that the group hoards revenue from tourism, retail, and remittances while the population faces blackouts and shortages.
GAESA was founded in 1995 by Raul Castro.
Its structure includes several arms: Gaviota manages hotels, resorts, and airlines; CIMEX runs retail stores and gas stations; FINCIMEX handles banking and remittances. Christopher Hernandez-Roy, acting director of the Center for Strategic and International Studies Americas Program, told the Washington Examiner that GAESA functions as a "monolithic economic conglomerate" controlled by the Cuban armed forces.
He said generals oversee each division and that the group generates revenue through legitimate business but keeps profits outside state budgets.
Cuba rejected the sanctions announcement.
Officials stated that GAESA is not an opaque parallel structure but a necessary response to U.S. sanctions, and they accused Rubio of attempting to confuse the public. Rubio later told the Senate Foreign Affairs Committee on June 2 that he does not believe the current Cuban system is capable of reform without new leadership.
