In a forceful statement, U.S. Secretary of State Marco Rubio criticized GAESA, Cuba's military-run conglomerate, for amassing more wealth than the Cuban government itself, without any benefit reaching the general population. This came as he outlined the latest sanctions against the business group announced on Thursday.
Via social media, Rubio's remarks, shared by journalist Eric Daugherty, were blunt: "It's a holding company established by generals in Cuba that has generated billions in revenue, none of which aids the Cuban people."
"Not a single penny goes to benefit the people of Cuba. Do you get that? I’m not sure if you’re aware. There’s the Cuban government with its own budget. And then there’s this private company with more money than the government itself," Rubio elaborated.
GAESA's Wealth and Its Lack of Impact on Infrastructure
Rubio emphasized that the funds from GAESA do not contribute to building roads, bridges, or providing food for the people. "Not a single road, not one bridge, not a grain of rice for any Cuban, except for those within the company," he asserted.
The State Department estimates that GAESA's revenue is three times that of Cuba's state budget, with internal leaks from 2025 analyzed by the Miami Herald and economist Pavel Vidal placing this figure at 3.2 times the state’s budget.
Control Over Cuban Economy and International Sanctions
The conglomerate holds sway over 40% to 70% of Cuba's formal economy and reportedly has illicit assets in hidden foreign accounts worth up to $20 billion, according to the State Department.
Rubio described the sanctions as a direct hit on those pilfering from the populace: "We are sanctioning a company that essentially takes everything generating revenue in Cuba and illegally funnels it into the pockets of a few regime insiders."
The Secretary of State emphasized that these measures target the elite exploiting the nation, not the Cuban people: "These are not sanctions against the Cuban people, because the people do not benefit from GAESA."
Sanctions and Their Broader Implications
Along with GAESA, its CEO, Brigadier General Ania Guillermina Lastres Morera, and the state-owned mining company Moa Nickel S.A. were sanctioned. The comprehensive package affects 12 Cuban officials, seven military and security entities, and three vessels.
The sanctions fall under Executive Order 14404, signed by President Donald Trump on May 1, 2026, which expands a national emergency declared that January and initiates a new sanctions program with potential secondary measures against third countries.
GAESA was established by Raúl Castro during the 1990s Special Period to provide the Revolutionary Armed Forces with an independent financial base following the Soviet collapse, formally founded on February 28, 1999.
The conglomerate operates with complete opacity: it does not pay taxes on dollar profits, forbids state comptroller audits, and maintains companies registered in Panama, Cyprus, and Liberia to dodge international sanctions.
Foreign businesses working with GAESA have until June 5 to terminate these dealings, or face secondary sanctions that could entail a ban on correspondent accounts in the U.S.
Rubio concluded his remarks with a firm warning: "We imposed them yesterday, and by the way, more actions are on the way."
Understanding GAESA's Influence in Cuba
What is GAESA?
GAESA is a Cuban military-run conglomerate that controls a significant portion of the country's economy and has amassed considerable wealth, exceeding the Cuban government's budget.
Why has GAESA been sanctioned?
GAESA has been sanctioned for accumulating wealth without benefiting the Cuban people, as well as for funneling funds into the pockets of regime insiders and maintaining illicit assets abroad.
How do these sanctions affect foreign businesses?
Foreign companies working with GAESA must cease operations by June 5 to avoid secondary sanctions, which could include restrictions on maintaining correspondent accounts in the U.S.