US Imposes New Sanctions on Cuban State Enterprises Amid Deepening Economic Crisis]

SAN JUAN, Puerto Rico — The U.S. government imposed new sanctions on Tuesday targeting five Cuban state companies, a move analysts say will likely deter foreign investment and worsen the island’s ongoing economic crisis.

U.S. Secretary of State Marco Rubio announced the sanctions target entities linked to Grupo de Administración Empresarial S.A. (GAESA), a business conglomerate operated by Cuba’s Revolutionary Armed Forces. GAESA is believed to control nearly 40% of Cuba’s gross domestic product and held $14.5 billion in liquid reserves as of early 2024.

“The situation in Cuba is devolving as the island’s corrupt, brutal and anti-American Communist regime continues to prioritize its own total control over the freedom, opportunity and basic well-being of the Cuban people,” Rubio wrote on X.

Rubio, whose parents were Cuban immigrants, accused regime elites of using GAESA to siphon resources for repression and anti-American activities rather than for essential infrastructure and public services.

Cuban Foreign Minister Bruno Rodríguez dismissed the sanctions, calling Rubio “dishonest and mendacious” and asserting that Cuba had proven resilient against U.S. “ruthless aggression.”

The designated entities include Almacenes Universales S.A. (AUSA), the government’s primary logistics and warehousing company; Rafin S.A., described as a financially opaque entity operating within GAESA; Banco Financiero Internacional S.A., a commercial bank critical for foreign investors; Geominera S.A.; and Empresa Siderúrgica Jose Martí, Cuba’s largest raw steel producer. The final sanction targeted Annalie Lilliam Rueda Cardero, daughter-in-law of former President Raúl Castro.

Michael Bustamante, a Cuban studies professor at the University of Miami, said the sanctions signal to foreign investors that doing business with these entities carries significant risk. “For most of these companies, it’s a bridge too far,” he said.

Last week, Cuba announced economic reforms allowing its private sector to import goods independently, though Bustamante noted it remains unclear if the measure is operational. Disruptions to supply chains could have humanitarian implications, he added.

The sanctions represent the latest escalation in U.S. pressure on Cuba, which also targets Cuban President Miguel Díaz-Canel and GAESA itself. Bustamante questioned whether the moves aim to facilitate a “hostile takeover” of Cuban state assets.

Meanwhile, Cuba unveiled reforms described by Bustamante as potentially the most significant economic liberalization in six decades, though doubts about implementation persist. He said the U.S. has shown no encouragement for these changes.

Cuba faces severe shortages of electricity, food, and clean water amid a deteriorating healthcare system, exacerbated by the U.S. energy embargo. In late January, President Donald Trump threatened tariffs on countries selling oil to Cuba — a key import previously sourced from Venezuela before U.S. actions disrupted those supplies.

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