European Hotel Chains Halt Operations in Cuba Amid U.S. Sanctions Threat

European hotel giants Meliá and Iberostar have ceased operations in Cuba, responding to an ultimatum from the United States. Washington threatened to impose trade and financial sanctions on any firms doing business with the Cuban military-economic consortium GAESA after June 5.

The move affects 15 hotels operated by the Spanish chain Meliá and 12 hotels under the Iberostar network, also Spanish. This withdrawal deals a significant blow to Cuba's already struggling economy, which is grappling with a severe lack of imported oil. Reports indicate that Cuba, heavily reliant on tourism for foreign currency, is now facing an existential crisis, compounded by drastic shortages of energy, food, and medicine, leading to widespread power outages and hospital service disruptions.

The U.S. sanctions are specifically targeting GAESA, a key military-economic conglomerate that generates vital foreign currency and holds significant influence over Cuba's political and economic policies. Former President Raúl Castro reportedly has a major role in GAESA's operations. The U.S. Justice Department has also issued an indictment against Castro, seeking his appearance in a Florida court for allegedly ordering the downing of two civilian aircraft in the 1990s.

U.S. President Donald Trump has signaled an intent to influence political and economic changes in Cuba, stating that the current communist leadership is incapable of implementing necessary reforms. Spanish newspaper El País suggests that Washington, which has maintained an economic and trade blockade against Cuba for years, believes these actions will force the Cuban leadership to accept fundamental changes to its political and economic system. In response, Cuban President Miguel Díaz-Canel has vowed to resist any U.S. attempts at subjugation, while Trump has indicated further plans for Cuba following his return from Iran.