U.S. Secretary of State Marco Rubio has asserted that Cuba's wealth is monopolized by a company run by military generals, who "take all the money," while ordinary Cubans are left to "literally eat garbage off the streets." These comments were made during an interview with Sean Hannity on Fox News aboard Air Force One, and subsequently shared by the State Department's official account on X.
"Cuba's wealth is controlled by a company owned by military generals who pocket every cent. Meanwhile, people are scavenging trash for food, and yet this company has amassed $16 billion. It's a broken, dysfunctional economy," Rubio declared.
Rubio was referring to GAESA (Grupo de Administración Empresarial S.A.), a military conglomerate that dominates the financial core of the regime. According to Washington, GAESA holds sway over roughly 40% or more of Cuba's economy.
The Economic Stronghold of GAESA
Rubio further emphasized the economic power structure on the island: "There is no real economy in Cuba. Any wealth that exists doesn't benefit the government but is controlled by a company of military generals. They possess billions of dollars. It's a non-functioning economy, impossible to reform."
The State Department has labeled GAESA as the "core of Cuba's kleptocratic communist system," accusing the conglomerate of hoarding up to $20 billion in illicit assets stashed in secret offshore bank accounts.
Sanctions and International Response
These remarks came a week after Rubio announced direct sanctions against GAESA under Executive Order 14404, signed by President Trump on May 1. Rubio was equally candid then: "Not a single penny benefits the Cuban people. There's the Cuban government with its budget, and then there's this private company with more wealth than the government itself."
Alongside GAESA, Brigadier General Ania Guillermina Lastres Morera, the executive president of the conglomerate, and the mining company Moa Nickel S.A. were also sanctioned. Foreign companies with ties to GAESA were given until June 5 to cease operations, facing secondary sanctions if they failed to comply.
Roots and Impact of GAESA
GAESA was established by Raúl Castro during the Special Period of the 1990s to provide the Revolutionary Armed Forces with an autonomous financial foundation, and it was formally founded on February 28, 1999. For decades, it was led by Luis Alberto Rodríguez López-Calleja, Raúl Castro's son-in-law. The conglomerate operates with complete opacity: it pays no taxes on dollar earnings, prohibits state audits, and maintains registered companies in Panama, Cyprus, and Liberia.
The cumulative pressure from the Trump administration has led to an 80% to 90% reduction in Cuba's energy imports, exacerbating a crisis that results in power outages lasting up to 25 hours across more than half of the nation.
Rubio has already indicated that the pressure campaign is far from over: "Expect new sanctions in the coming days and weeks."
Understanding the Impact of GAESA on Cuba's Economy
What is GAESA and why is it significant in Cuba?
GAESA, or Grupo de Administración Empresarial S.A., is a military-run conglomerate that plays a pivotal role in controlling a significant portion of Cuba's economy. It is involved in numerous sectors and is known for its lack of financial transparency.
How does GAESA affect the Cuban government's economy?
GAESA diverts substantial economic resources from the Cuban government, operating independently and amassing significant wealth. This reduces the financial resources available to the government for public spending and development.
What actions have been taken against GAESA?
The U.S. government has imposed sanctions on GAESA, targeting its financial activities and assets as part of a broader strategy to pressure the Cuban regime. These sanctions aim to cut off GAESA's economic influence and impact its operations.