US Treasury Sanctions GAESA: The Cuban Military Conglomerate That Controls the Economy and Thrives on Donations The U.S. sanctioned Grupo de Administración Empresarial S.A. (GAESA), a Cuban military-controlled conglomerate founded by Raúl Castro that controls an estimated 40 percent of Cuba’s economy. Despite operating opaquely with subsidiaries in tax havens, GAESA’s profits are allegedly siphoned off by the regime rather than benefiting the Cuban people, who face widespread shortages and poverty. GAESA dominates strategic sectors like tourism, retail, and finance, controlling billions in assets held in undisclosed overseas accounts, while operating outside government audits and contributing to the collapse of Cuba’s broader economy. This military conglomerate’s control extends to remittances and retail, with its stores operating exclusively in foreign currency, effectively excluding the majority of Cubans earning pesos from essential goods, exacerbating hunger and malnutrition.

• GAESA, a Cuban military conglomerate founded by Raúl Castro, controls over 40% of Cuba’s economy.
• The U.S. sanctioned GAESA for allegedly diverting aid and profits meant for the Cuban people.
• GAESA operates with subsidiaries in Panama, Cyprus, and Liberia, holding billions in undisclosed overseas accounts.
• The conglomerate dominates key sectors including tourism (Gaviota), retail (CIMEX, TRD Caribe), and finance.
• GAESA controls remittances and ports, including the Port of Mariel.
• Former GAESA chief Gen. Luis Alberto Rodríguez López-Calleja was also sanctioned.
• Leaked documents suggest GAESA held approximately $18 billion in current assets, with $14.5 billion in hidden accounts.
• GAESA is exempt from government audits, and its former chief lacked access to its financial accounts.
• Monopolistic control by GAESA’s retail arms (TRD Caribe, CIMEX) excludes most Cubans from accessing essential goods sold in hard currency.
• The Cuban ration book now covers only about ten days of food per month.
• GAESA’s formal remittance channels capture only a small fraction of flow as informal networks thrive.
• The Cuban regime has criminalized informal remittance networks to reroute funds through GAESA-controlled channels.
• GAESA subsidiaries have been identified for using Panamanian incorporation to subvert U.S. trade restrictions.