Rubio Defends New US Sanctions on Cuba 05/11 06:07

   

   HAVANA (AP) -- U.S. Secretary of State Marco Rubio on Friday defended the 
Trump administration's decision to slap new sanctions on Cuba, the largest of 
which is against Grupo de Administracin Empresarial S.A., a business 
conglomerate operated by the Cuban Revolutionary Armed Forces.

   In addition to GAESA and its leader, the sanctions announced Thursday 
include Moa Nickel, a Cuban joint venture with Canada's Sherritt International, 
which immediately announced it would withdraw from the business, ending a 
32-year presence on the island.

   The May 1 executive order and the new designations announced May 7 
significantly expand the legal authority through which the U.S. government can 
levy sanctions on third-country nationals and firms, explained Lee Schlenker, a 
research associate at the Quincy Institute's Global South program, a Washington 
think tank.

   "Not only are they subject to having their assets frozen but their U.S. 
accounts as well as their travel to the U.S., that of their shareholders, 
investors or employees," said Schlenker. "This is bound to have an extremely 
significant impact of the presence of foreign companies" in Cuba.

   Economist Pavel Vidal, a Cuba expert at Pontificia Universidad Javeriana in 
Colombia, told The Associated Press that the measures are "very concerning" for 
an economy already "practically paralyzed." The U.S. has blocked fuel shipments 
to Cuba since January, further escalating the island's yearslong economic 
crisis. Vidal noted that the new sanctions would likely deter GAESA's remaining 
partners, saying that "very few will risk defying them."

   The new measures amount to "total isolation," said Vidal, driven by the fear 
they instill in international banks, insurers and corporations.

   As an expert who has analyzed GAESA's internal documents, Vidal noted that 
the conglomerate's deep reach into nearly every sector of the Cuban economy 
makes any connection to the island a potential liability under the new U.S. 
rules.

   According to Vidal, GAESA commands nearly 40% of Cuba's gross domestic 
product. As of early 2024, the conglomerate held $14.5 billion in liquid 
reserves, with annual revenues triple the size of the entire Cuban state budget.

   Family ties with the Castros

   Established in the 1990s under military control, GAESA was the Cuban Armed 
Forces' strategic response to the economic collapse that followed the Soviet 
Union's fall and the tightening of U.S. sanctions in place at the time.

   Despite being state-owned, GAESA's accounts are exempt from audits by the 
Office of the Comptroller General. Gladys Bejerano, the entity's director, 
admitted to this lack of oversight in a 2024 interview; shortly thereafter, she 
retired.

   For years, until his death in July 2022, Luis Alberto Rodrguez 
Lpez-Calleja served as GAESA's general manager. As the son-in-law of former 
President Ral Castro, he was a pillar of the family -- a legacy continued by 
his son, Ral Guillermo Rodrguez Castro. While the younger Castro officially 
serves as his grandfather's chief bodyguard, he has recently emerged as a 
pivotal intermediary in sensitive discussions with the U.S.

   This week's sanctions also added Ania Guillermina Lastres to the U.S. 
blacklist. As the successor to Lpez-Calleja, she currently serves as GAESA's 
executive president, overseeing the conglomerate's vast international financial 
interests.

   Based on the limited information available, GAESA oversees dozens of retail 
outlets -- selling everything from food and clothing to home appliances -- as 
well as a sprawling service network that includes car rentals and travel 
agencies. Notably, it also manages Cuba's financial institutions, currency 
exchange bureaus, and the administration of the country's major hotels.

   In remarks to the press Friday, Rubio said the sanctions were not on the 
Cuban people and he referred to 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."

   Cuban authorities maintain that the sanctions constitute "collective 
punishment" designed to strangle the island's economy, arguing the Trump 
administration's policies show a disregard for the welfare of the Cuban people 
in favor of political leverage.

   The new sanctions on Havana come under the weight of a U.S. energy blockade 
that has caused sweeping water and power outages along with severe gas and 
water shortages.