Jeremy P. Lewin, acting Under Secretary of State and senior advisor to Secretary Marco Rubio, declared on Saturday that recent U.S. sanctions on GAESA aim to cut off illicit funds hidden by the Cuban regime’s elites in secret offshore bank accounts.
"Cuba’s communist system is a cruel deception. While the people endure hunger, poverty, and oppression, the corrupt elites have siphoned national resources into a clandestine network of foreign bank accounts for personal gain. Enough is enough!" Lewin posted on his X account (@UnderSecretaryF).
Lewin emphasized that the sanctions not only target the military conglomerate but also extend to "foreign entities hosting them, anywhere in the world," demanding that the regime return these resources to the Cuban people.
Announced by Rubio on May 7, the sanctions target the conglomerate itself, its director Brig. Gen. Ania Guillermina Lastres Morera, and the mining company Moa Nickel S.A.
Washington estimates GAESA holds between $18 billion and $20 billion in foreign assets, with revenues "likely exceeding the Cuban state budget by more than three times," according to an executive order signed by President Trump in late April.
Controlling between 40% and 70% of Cuba’s formal economy, GAESA oversees luxury hotels, numerous gas stations, supermarkets, currency exchange outlets, the island’s sole internet provider, and the International Financial Bank, granting it significant control over the nation’s foreign currency reserves.
Operating with absolute secrecy, GAESA does not allow the Cuban government to audit its accounts. In 2024, the State Comptroller was dismissed after 14 years for admitting publicly to lacking access to the conglomerate’s finances.
Rubio described GAESA as "a private company that has more money than the government itself" and contributes nothing to the populace.
"This is a sanction against a company that steals from the Cuban people for the benefit of a few," stated the Secretary of State during his visit to the Vatican, adding, "we will do more."
Foreign companies have until June 5 to cease operations with GAESA or face secondary sanctions. Major shipping companies have already halted operations with Cuba following the announcement.
Pressure mounts on multiple fronts. CIA Director John Ratcliffe visited Havana yesterday, meeting with Raúl Guillermo Rodríguez Castro ("El Cangrejo"), grandson of Raúl Castro and a key figure in negotiations with Washington, as well as with the Cuban Interior Minister and the head of Cuban intelligence.
Meanwhile, on May 20, the Department of Justice is set to announce a federal indictment against Raúl Castro for the downing of the Brothers to the Rescue planes on February 24, 1996, which resulted in the deaths of four Cuban-Americans.
President Miguel Díaz-Canel labeled Trump’s executive order as "coercive," while the Cuban government itself admitted its oil reserves have depleted, adding unprecedented economic pressure on the regime.
Key Questions on GAESA Sanctions and Cuba's Economic Crisis
What is the purpose of the U.S. sanctions on GAESA?
The U.S. sanctions on GAESA are aimed at cutting off illicit funds that the Cuban regime’s elites have hidden in secret offshore bank accounts, while also targeting foreign entities that host these funds.
How much does GAESA control of Cuba's economy?
GAESA controls between 40% and 70% of Cuba’s formal economy, including sectors like luxury hotels, gas stations, supermarkets, and the island’s internet services.
What are the consequences for foreign companies dealing with GAESA?
Foreign companies have until June 5 to cease operations with GAESA or they will face secondary sanctions, which could impact their business operations globally.
What impact do these sanctions have on the Cuban regime?
These sanctions intensify economic pressure on the Cuban regime, which is already struggling with depleted oil reserves, potentially leading to greater financial instability.