HAVANA, Cuba — Cuban authorities issued a forceful rejection this Tuesday of what it calls American “slander” targeting GAESA, the island nation’s military-backed economic conglomerate that has become the latest focus of sweeping new United States sanctions. The fresh restrictions, announced earlier in May, represent a sharp escalation of the Trump administration’s long-running pressure campaign against Cuba’s communist-led government, a campaign that has included public musings from former President Trump about potential US takeover of the island.
In unveiling the new sanctions, then-Secretary of State Marco Rubio leveled sharp accusations against GAESA, an entity analysts estimate controls roughly 70 percent of Cuba’s total national economy. Rubio claimed the conglomerate operates as an unaccountable “state within a state,” accumulating massive wealth for a small ruling elite while ordinary Cuban citizens bear the cost of its opaque operations. “It hoards the profits from its businesses for the benefit of a small elite,” Rubio stated.
Cuba’s official response, released in a public statement Tuesday, pushed back firmly against these claims, rejecting characterizations of GAESA as either an opaque institution or a parallel structure operating outside of Cuban state oversight. “On the contrary,” the statement read, the conglomerate “has been a coordinated response of proven efficiency to the economic siege that has historically sought to suffocate the Cuban Revolution” — a direct reference to the US trade embargo that has been in place against Cuba since 1962.
The latest round of US sanctions strengthens existing restrictions on GAESA, ordering a full freeze on all of the conglomerate’s assets held within US jurisdictions and imposing harsh penalties on any foreign companies that choose to conduct business with the entity. Cuban officials framed the measures as “the most intense, disproportionate, and dangerous escalation in the recent history of relations between Cuba and the United States.”
The statement also highlighted GAESA’s widespread contributions to Cuban public welfare and economic stability, noting the conglomerate played a critical role in sustaining the island’s economy through the height of the COVID-19 pandemic and has overseen the construction of more than 10,000 new residential homes for Cuban citizens. “Its work speaks for itself, and it does so above the state slander concocted in Washington,” the statement concluded.
Multiple independent sources confirmed to AFP on Tuesday that Spanish hospitality giant Iberostar has begun exiting from 12 Cuban hotel properties it previously operated in partnership with GAESA-affiliated firms. The company made the decision to withdraw from hotels co-managed with Gaviota, Cuba’s state tourism group that is a core subsidiary of GAESA, one insider confirmed. “As of June 1, Iberostar is pulling out of all its hotels (run with) Gaviota,” a second senior tourism industry source corroborated.
When contacted by AFP for comment, the Mallorca-based hospitality group declined to provide on-the-record details about its decision. Sources added that Iberostar will maintain its existing co-management agreements for hotels owned directly by Cuba’s national tourism ministry, separate from GAESA-linked entities.
Iberostar’s exit follows a similar move by Canadian mining corporation Sherritt, which terminated its long-standing partnership with GAESA earlier this year after facing US sanctions penalties for its operations in Cuba.









