U. S. Secretary of State Marco Rubio has openly criticized a military business group in Cuba called GAESA for the country’s economic problems. He described GAESA as a “state within the state” that profits at the expense of the Cuban people, benefiting only a small elite. While Cuban leadership remains silent about GAESA, citing a need for secrecy to navigate U. S. trade restrictions, Rubio claims that GAESA’s control is a major barrier to addressing Cuba’s economic challenges.
GAESA, short for Grupo de Administración Empresarial, is a large conglomerate of military-operated businesses, considered the most profitable in Cuba. It runs luxury hotels, the main port, the largest bank, and various supermarkets and gas stations. Established in the 1990s by Raúl Castro, GAESA is overseen by the Revolutionary Armed Forces. Following the death of its former head, Luis Alberto RodrÃguez López-Calleja, Brigadier General Ania Guillermina Lastres took over and faced U. S. sanctions.
Rubio pointed out that much of Cuba’s economic turmoil, including shortages of electricity, fuel, and food, stems from the wealth accumulated by GAESA, claiming it hoards billions of dollars. The U. S. government has imposed sanctions on GAESA to restrict American tourism to its hotels. Cuba’s government, however, denies that GAESA is to blame for the economic crisis, instead highlighting the negative impacts of the U. S. blockade.
Cuban officials rarely discuss GAESA, and there is little transparency regarding its financial status within the government. Some officials argue this secrecy is necessary to maintain operations amid strong U. S. sanctions. Estimates suggest that GAESA may control 40% to 70% of the Cuban economy, with Rubio stating its revenues exceed three times Cuba’s budget. In response to claims about GAESA’s vast wealth, Cuba’s embassy in the UK argued that such figures are exaggerated, accusing the U. S. of using them to justify tighter sanctions.
With information from Reuters
