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The Cuban military entities in Washington’s crosshairs

by David P.
3 hours ago
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Headquarters of Cuba's US-sanctioned conglomerate GAESA, which plays a role in large parts of the island's economy. ©AFP

Havana (AFP) – The United States on Thursday targeted a new batch of Cuban military entities and defense officials, in a bid to build fissures in Havana’s communist government and pressure for reform. Here is a look at the entities in the crosshairs of US President Donald Trump’s administration since its campaign began earlier this year:

– GAESA: the military’s economic powerhouse – GAESA, a military-controlled conglomerate founded by Raul Castro in 1995, is a central target in Washington’s Cuba policy. Its original purpose was to generate revenue for the Revolutionary Armed Forces and bring in hard currency during the island’s “Special Period,” a profound crisis in the 1990s following the collapse of the Soviet Union. Today, analysts estimate GAESA controls 40-70 percent of the Cuban economy, with as much as $18 billion in assets across tourism, retail, logistics, finance, and port services.

GAESA quickly expanded from its inception into strategic sectors, including dollar-denominated retail chains, the Port of Mariel — the country’s most important commercial port west of Havana — fuel stations, and financial services. Through its subsidiary Cimex, the island’s largest commercial, financial, and logistics network, GAESA generates and channels a large share of Cuba’s foreign-currency earnings. The group also controls the tourism company Gaviota, which owns dozens of hotels, sometimes in partnership with international hotel chains, as well as marinas, restaurants, taxi services, and car-rental companies. GAESA’s headquarters are located in a building in Havana’s historic center with no visible sign identifying the company. The conglomerate was sanctioned by the Trump administration in May, alongside its chief executive, Ania Guillermina Lastres.

Some argue, however, that targeting GAESA may be counterproductive. According to one former CIA officer, who spoke to AFP on condition of anonymity, the group is one of the few institutions in Cuba’s government with an interest in abandoning the decades-old communist economic model. It could play a similar role as Vietnam’s economically powerful military did in that country’s transition, the officer said.

– GAESA’s procurement network – The latest sanctions target GAESA affiliates, including Tecnoimport, which the State Department says imports technical products, including military equipment, on behalf of the Ministry of the Revolutionary Armed Forces (MINFAR). The United States also accuses the company of procuring military-related goods from Russia and China. Another GAESA affiliate, Tecnotex, was designated for allegedly participating in efforts to refurbish Cuba’s fleet of Russian-made helicopters and is alleged to have previously cooperated with North Korea.

– The top brass – The sanctions campaign also reaches the upper ranks of Cuba’s military leadership. Those designated include Defense Minister Alvaro Lopez Miera and General Staff Chief Roberto Legra Sotolongo, who is also first deputy defense minister. Both had previously been sanctioned by the US Treasury Department following Cuba’s 2021 anti-government protests. Washington also targeted Jose Antonio Remon Rodriguez, head of MINFAR’s foreign relations directorate, and Oscar Enrique Biosca Gallego, who oversees economic affairs within the ministry. The list extends to Cuba’s military attaches in Moscow and Beijing, Monica Milian Gomez and Waldo Perez Cortes, respectively. The State Department says they have been involved in military procurement and defense cooperation with Russia and China. The latest measures reflect growing US concern over Cuba’s military relationships with Moscow and Beijing.

– Cuba’s military industrial base – The new measures also target entities directly involved in the production, maintenance, and modernization of military equipment. The Union de Industria Militar (UIM), the military holding company responsible for manufacturing and repairing weapons and equipment for the Revolutionary Armed Forces, was sanctioned for operating in Cuba’s defense sector. Washington says the company has also worked with Russian defense entities to modernize Soviet-era weapons systems. Also targeted was the Empresa Militar Industrial Yuri Gagarin, which repairs military helicopters and fixed-wing aircraft and helps maintain Cuba’s fleet of Russian-built military planes. Duna S.A., an import company, was sanctioned as well. The State Department alleges that it has helped bring military-related equipment from Russia and China into Cuba.

© 2024 AFP

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