Rubio Announces New Sanctions on Cuba

Rubio Announces New Sanctions on Cuba

By Ryan Morgan

WASHINGTON—U.S. Secretary of State Marco Rubio announced on May 7 new sanctions against a pair of Cuban state-run enterprises and a business executive accused of financially sustaining the communist state at the expense of the Cuban people.

The new sanctions are in line with an executive order President Donald Trump issued on May 1, titled “Imposing Sanctions on Those Responsible for Repression in Cuba and for Threats to United States National Security and Foreign Policy.” These new economic measures are part of a series of recent efforts by the U.S. government to increase pressure on communist Havana.

“The Trump Administration is taking decisive action to protect U.S. national security and deprive Cuba’s communist regime and military of access to illicit assets,” Rubio said.

Among the business entities targeted was Grupo De Administración Empresarial S.A. (GAESA), which is estimated to represent about 40 percent of the island’s economy. GAESA is an expansive business conglomerate operated by the Cuban military.

“GAESA is involved in various sectors of the Cuban economy and is designed to generate income not for the Cuban people, but only for the benefit of its corrupt elites,” Rubio said. “While the Cuban people suffer from hunger, disease, and chronic under-investment in critical infrastructure such as its power grid, much of the proceeds of GAESA’s activities are funneled away to hidden overseas bank accounts.”

Ania Guillermina Lastres Morera, the executive president of GAESA, was also targeted in the sanction announcement on Thursday.

Rubio said Lastres is responsible for managing GAESA’s overseas accounts.

A second business venture, Moa Nickel SA (MNSA), is involved in Cuba’s heavy metals and mining sector.

Rubio said MNSA “has exploited Cuba’s natural resources to benefit the regime at the expense of the Cuban people.”

“It profits from assets that were originally expropriated by the Cuban regime from U.S. persons and corporations,” he said.

After Fidel Castro and his communist revolutionaries seized power in Cuba in 1959, they seized properties and assets previously held in the country by U.S. businesses.

Cuban state-owned company La Compania General de Niquel and Canada-based company Sherritt International Corporation have jointly operated MNSA.

Ahead of the U.S. sanctions announcement on Thursday, Sheritt notified investors that it had suspended its direct participation in MNSA.

“Sherritt has not been formally designated under the Executive Order. However, such a designation could occur at any time,” the Canada-based corporation said. “In any event, the mere issuance of the Executive Order itself creates conditions that materially alter the Corporation’s ability to operate in the ordinary course, including activities related to Sherritt’s Cuban joint venture operations.”

Trump hinted at potential future military actions concerning Cuba as he addressed the Future Investment Initiative summit in Miami Beach, Florida, on March 27.

“I built this great military. I said, ‘You’ll never have to use it.’ ​But sometimes you have to use it. And Cuba is ​next, by the way,” Trump said.

Last month, senators considered but ultimately voted not to advance a resolution to prevent Trump from ordering military action against Cuba without first obtaining Congressional approval.