Rubio Defends Fresh US Sanctions on Cuba Targeting Military-Run Business Empire

US Secretary of State Marco Rubio has defended the Trump administration’s sweeping new sanctions on Cuba, with the measures primarily targeting GAESA , the military-controlled conglomerate that dominates large parts of the island’s economy. The sanctions mark a major escalation in Washington’s campaign to tighten economic pressure on Havana amid Cuba’s worsening financial and energy crisis.

The new restrictions also target Moa Nickel SA , a joint venture involving Cuba and Canada-based Sherritt International. Within hours of the sanctions announcement, Sherritt confirmed it was suspending joint-venture operations in Cuba, repatriating foreign staff and effectively ending a 32-year presence on the island.

The sanctions stem from a May 1 executive order signed by President Donald Trump that broadens US authority to penalise foreign firms and banks doing business with Cuba’s military-linked sectors. Analysts say companies linked to sanctioned entities could face asset freezes , banking restrictions and travel bans.

Rubio described GAESA as the “heart of Cuba’s kleptocratic communist system” , accusing it of diverting national wealth to regime insiders while ordinary Cubans face hunger, blackouts and fuel shortages. Economist Pavel Vidal said the sanctions could lead to “total isolation” for Cuba by frightening off banks, insurers and foreign investors. Reports cited by analysts estimate GAESA controls nearly 40 per cent of Cuba’s GDP and holds billions of dollars in overseas assets.

The sanctions also target GAESA chief Ania Guillermina Lastres Morera , while US officials warned that more punitive measures could follow in the coming weeks. Cuban authorities condemned the move as “collective punishment” , accusing Washington of worsening shortages of electricity, fuel and essential supplies across the island.