Cuban army conglomerate, sanctioned by Washington, divests companies

Cuba's powerful army conglomerate, GAESA, is shedding some of its businesses to protect foreign companies it partners with from U.S. sanctions. This move comes as the U.S. government continues to exert pressure on the island's economy.

GAESA, which controls a significant portion of Cuba's economy, was the primary target of broad sanctions imposed by then-President Donald Trump in May. These sanctions hit sectors like energy, defense, mining, security, and financial services, all heavily influenced by GAESA. The U.S. measures also penalize foreign companies and shippers working with the conglomerate, leading to an exodus of investors amid a severe fuel shortage imposed by the U.S. on the communist-governed island.

Sources revealed to AFP that Terminal de Contenedores Mariel SA, a logistics arm of GAESA operating Cuba's largest commercial port, Mariel, has sold its assets. The buyer is Coral Marítima SA, a state-owned enterprise focused on the shipping sector, which is not officially linked to GAESA. This divestment follows similar moves, such as GAESA withdrawing from a joint venture managing the new Miramar Business Center in Havana, where several foreign companies are based. Guernsey-based CEIBA Investments Ltd now holds a 100% stake in that facility.

U.S. Senator Marco Rubio has criticized GAESA, calling it a "state within a state" that enriches a select elite. The U.S. State Department estimates GAESA's economic control ranges from 40% to 70% of the island's economy. The divestment strategy aims to mitigate the impact of these sanctions, which have already caused major shipping lines like France's CMA CGM and Germany's Hapag-Lloyd to suspend cargo deliveries, even those containing aid.