Rubio backs Cuba sanctions targeting military firm

Summary

Rubio defended new U.S. sanctions on Cuba, including measures targeting military-run conglomerate GAESA.

Why this matters

The sanctions expand U.S. authority to penalize foreign firms tied to Cuba, raising the stakes for international companies doing business on the island. They also come as Cuba faces a prolonged economic crisis and shortages.

U.S. Secretary of State Marco Rubio on Friday defended new Trump administration sanctions on Cuba, including measures targeting Grupo de Administración Empresarial S.A. (GAESA), a military-run business conglomerate.

The sanctions announced Thursday also targeted GAESA’s leader and Moa Nickel, a Cuban joint venture with Canada’s Sherritt International. Sherritt said it would withdraw from the business, ending a 32-year presence on the island.

GAESA accounted for nearly 40% of Cuba’s gross domestic product. As of early 2024, he said, it held $14.5 billion in liquid reserves, and annual revenue triple the size of the Cuban state budget.

Established in the 1990s under military control, GAESA oversees retail stores, car rentals, travel agencies, financial institutions, currency exchange bureaus, and major hotels, according to the article.

Rubio told reporters Friday the sanctions did not target the Cuban people. He described GAESA as a company that “is taking anything that makes money in Cuba and illegally putting it into the pockets of a few regime insiders.”

The sanctions came as Cuba faced water and power outages, and fuel and water shortages.

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