U.S. sanctions deepen Cuba's isolation, halting Visa, Mastercard and hotel chains

Cuba's economic and international isolation is intensifying as the United States expands its sanctions to encompass the financial and tourism sectors. Starting June 6, Visa and Mastercard transactions will be suspended within the island nation. This move follows a notification from overseas financial institutions that process payments for the Cuban state-run payment entity, Finximex, will halt their services.

The Cuban Central Bank stated that this suspension is directly linked to an executive order issued by U.S. President Donald Trump, characterizing the measure as a strategy "to suffocate the Cuban people." This action will prevent Cuba from receiving revenue from international card payments for goods and services.

Previously, Cuban credit card transactions were handled through a partnership between foreign banks and Finximex, a financial arm of GAESA, a Cuban conglomerate linked to the military. The U.S. has sanctioned GAESA, accusing it of accumulating profits from key Cuban industries like tourism and finance for the benefit of the military and a privileged elite, claims the Cuban government denies.

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This suspension is directly linked to an executive order issued by U.S. President Donald Trump... Such measures are part of a strategy to suffocate the Cuban people.

The tightening U.S. sanctions are expected to deliver another blow to Cuba's already struggling economy and tourism sector. The withdrawal of foreign hotel chains is accelerating, with Spain's Meliá announcing its cessation of all operations in Cuba. This follows similar departures by Canada's Blue Diamond Resorts, Spain's Iberostar, and Archipelago Hotels. These companies, often operating as joint ventures with state-owned tourism firms under GAESA, are pulling out to avoid secondary U.S. sanctions targeting foreign businesses collaborating with GAESA.

Despite the worsening economic conditions, including widespread power outages due to fuel shortages affecting transportation, healthcare, and education, many Cubans are striving to adapt. They are utilizing solar power, electric tricycles, and the black market for fuel. However, protests have also emerged in some areas. The U.S. government is reportedly preparing for potential regime instability in Cuba this summer, having recently conducted war games simulating such scenarios.

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GAESA is not an opaque organization, nor an organization parallel to the Cuban state. Rather, it is a meticulously planned and proven effective national response to the economic blockade that has historically sought to suffocate the Cuban Revolution.