U.S. Imposes Broad Sanctions on Cuba Targeting Military-Owned GAESA

U.S. Secretary of State Marco Rubio announced new sanctions on Cuba on Thursday, May 7, 2026, targeting Grupo de Administración Empresarial S.A. (GAESA), a business conglomerate controlled by the Cuban Revolutionary Armed Forces, and Moa Nickel, a joint venture between Cuban state entities and Canada's Sherritt International. The sanctions, issued under an executive order dated May 1, significantly expand U.S. authority to penalize foreign companies and individuals doing business in Cuba by freezing assets, blocking U.S. accounts, and restricting travel for executives, shareholders, and employees.

Sherritt International confirmed it would withdraw from Moa Nickel immediately, ending its 32-year presence in Cuba. Lee Schlenker, a research associate at the Quincy Institute's Global South program, said the expanded legal reach of the sanctions is expected to deter foreign investment and operations across Cuba. Economist Pavel Vidal of Pontificia Universidad Javeriana warned the measures could lead to 'total isolation' of the Cuban economy, already weakened by a U.S. fuel blockade since January 2026 that has triggered widespread power and water outages.

GAESA, which controls nearly 40% of Cuba's GDP and holds $14.5 billion in liquid reserves as of early 2024, operates across retail, finance, tourism, and currency exchange. The entity is exempt from state audits, and its leadership has close ties to the Castro family. Ania Guillermino Lastres, the current executive president, was added to the U.S. sanctions list alongside the entity. U.S. officials allege GAESA siphons profits to regime insiders, a claim dismissed by Cuban authorities, who denounce the sanctions as collective punishment.

The Cuban government condemned the sanctions as an escalation aimed at destabilizing the economy and undermining national sovereignty. The measures come amid growing humanitarian strain on the island, with shortages of fuel, water, and electricity affecting daily life. The U.S. maintains the actions are targeted at military and political elites, not the Cuban people.

Sherritt International will finalize its exit from Moa Nickel within 90 days, while the U.S. Treasury Department said it will monitor compliance among third-country firms. The Cuban government is expected to appeal to international bodies against what it calls economic coercion, with regional diplomatic responses anticipated in the coming week.