On Tuesday, U.S. Secretary of State Marco Rubio delivered a sharp critique of the Cuban regime as he announced a new wave of sanctions targeting entities linked to the military conglomerate GAESA. This move marks Washington's most robust response to the recent economic reforms pushed by Miguel Díaz-Canel.
Rubio argues that the situation in Cuba is worsening because the authorities continue to prioritize "their total control over freedom, opportunities, and the basic well-being of the Cuban people," despite introducing an ambitious package of 176 economic measures as a profound overhaul of the current model.
His statements came as the State Department unveiled sanctions against five Cuban entities and a member of the Castro family circle under Executive Order 14404, signed by President Donald Trump on May 1.
The sanctions impact three companies associated with GAESA—Almacenes Universales S.A. (AUSA), RAFIN S.A., and Banco Financiero Internacional (BFI)—along with GeoMinera S.A., Empresa Siderúrgica José Martí (Antillana de Acero), and Annalie Lilliam Rueda Cardero, the wife of Alejandro Castro Espín, a former head of Cuban intelligence services and son of Raúl Castro.
The sanctions come just four days after the State Department labeled the reforms approved by the National Assembly as "superficial smoke signals."
Washington's Perspective on Cuban Reforms
Last Friday, a U.S. spokesperson stated that these measures are a typical strategy by the regime to project an image of change without relinquishing political and economic control over the country.
The Cuban government has presented the 176 transformations as the deepest reform since the establishment of the communist model, with proposals to allow private banking, expand foreign investment, relax foreign trade, lift restrictions on the private sector, and authorize the buying and selling of state-owned company shares.
However, Washington views these measures as inadequate as long as the primary income sources of the economy remain under state and military control.
GAESA: A Key Target of Criticism
Rubio focused much of his criticism on GAESA, describing it as the main tool used by the ruling elites to seize the island’s resources. "GAESA has continually served as the primary vector for regime elites to plunder the island's scarce resources," stated the Secretary of State in his announcement.
According to the U.S. diplomatic chief, these resources are used to finance repression, espionage, and hostile activities against the United States, instead of being allocated to schools, power plants, and other basic needs of the Cuban people.
The State Department maintains that GAESA continues to function as the "financial muscle" behind the regime's repressive apparatus.
A Warning to International Entities
Beyond the sanctioned entities, Washington issued a direct warning to foreign banks, investors, and companies with ties to economic structures controlled by the Cuban regime. Rubio warned that anyone providing services to the sanctioned actors risks similar measures.
"Foreign banks and other companies offering services to these entities must immediately cease such activities," he noted.
This warning is particularly significant as many of Havana's announced reforms aim to attract foreign investment, international financing, and new trade partners to alleviate an economic crisis worsened by fuel shortages, inflation, declining production, and prolonged blackouts.
The new round of sanctions confirms that the Trump administration continues a strategy of maximum pressure on the economic structures supporting the Cuban regime. While Díaz-Canel and Manuel Marrero Cruz attempt to present the reforms as an opening capable of rescuing a collapsed economy, Washington insists that the changes lack credibility without political transformations and the end of military control over strategic sectors.
For Rubio, the fundamental problem remains unchanged: a system that, as he asserted, continues to prioritize maintaining power over the freedom and well-being of the Cuban people.
Understanding U.S. Sanctions on Cuba
What are the main targets of the new U.S. sanctions on Cuba?
The main targets of the new U.S. sanctions are entities linked to GAESA, including Almacenes Universales S.A., RAFIN S.A., Banco Financiero Internacional, GeoMinera S.A., and Empresa Siderúrgica José Martí, as well as Annalie Lilliam Rueda Cardero.
Why does Marco Rubio criticize GAESA?
Marco Rubio criticizes GAESA for being the primary tool used by the ruling elites to exploit the island's resources, which he claims are used for repression and espionage rather than addressing the basic needs of the Cuban people.
How does the U.S. view the economic reforms announced by the Cuban government?
The U.S. views the economic reforms as insufficient and superficial, arguing that they do not involve political changes or relinquish military control over key economic sectors.