The U.S. Under Secretary of State for Western Hemisphere Affairs, Juan Pablo Segura, launched a scathing critique on Monday against Cuba's ruling elite. He highlighted how they lavishly spend in a single day what most Cubans earn over several months, all while the nation grapples with widespread power outages, food shortages, and a severe economic crisis. He singled out GAESA, a business conglomerate under Cuban military control, as a central figure in this scenario.
"Cuba's ruling elite spends more in one day than the average Cuban earns in months. At the heart of this military-controlled kleptocracy is GAESA, which holds $20 billion in illicit assets and channels cash to overseas accounts while the Cuban people suffer from hunger and blackouts," Segura asserted on his official X account.
Segura further accused the Cuban regime of selling subsidized Venezuelan oil on international markets to earn foreign currency, rather than using it to ease the ongoing energy crisis that subjects millions of Cubans to regular power cuts.
This accusation draws from information released by the Miami Herald in January, based on a U.S. government analysis. It suggested that Cuba might have resold about 60% of the oil supplied by Venezuela.
According to the analysis, from late 2024 to late 2025, Cuba allegedly sold around 40,000 barrels of crude oil and derivatives daily to Asian buyers.
Segura has previously criticized the Cuban military's financial practices. In August, he accused GAESA of "looting" approximately $18 billion from the Cuban people and questioned the conglomerate's immunity from audits by the General Comptroller of the Republic.
Just days afterward, he described the island's economic system as a "military-controlled kleptocracy," where the nation's resources are concentrated in the hands of a minority linked to power.
These accusations are part of Washington's increasing pressure on the military conglomerate. On May 7, the United States imposed sanctions on GAESA and its executive president, Brigadier General Ania Guillermina Lastres Morera.
FAQs on U.S. Criticism of Cuba's Economic Practices
What is GAESA?
GAESA is a business conglomerate in Cuba controlled by the Cuban military. It has been accused of holding $20 billion in illicit assets and diverting funds overseas.
How is the U.S. responding to Cuba's economic practices?
The United States has increased pressure on Cuba by criticizing its economic practices and imposing sanctions on GAESA and its leaders, accusing them of financial mismanagement and exploitation.
What are the implications of Cuba selling Venezuelan oil internationally?
By selling Venezuelan oil internationally, Cuba gains foreign currency but neglects its own energy crisis, which leads to frequent power outages affecting millions of Cubans.