U.S. expands Cuba sanctions with designations targeting GAESA, mining venture and executive

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U.S. expands Cuba sanctions

Highlights

U.S. designates GAESA, GAESA executive Lastres, and Moa Nickel SA under Executive Order 14404, intensifying Cuba sanctions targeting financial and mining sectors.
All U.S.-linked property and interests of designated parties are blocked, with any U.S. transactions involving such property prohibited unless specifically exempted by OFAC.
Measures escalate sanctions risk for non-U.S. entities transacting with listed parties, as GAESA is estimated to control over 40% of Cuba's economy and up to $20 billion in illicit assets.

Sanctions scope under new executive order

As reported by the United States Department of State, the Trump Administration is designating GAESA for operating in Cuba's financial services sector, Lastres for her leadership role at GAESA, and Moa Nickel SA for operating in the island's metals and mining sector under Executive Order 14404.

The administration says the measures are intended to cut off access to illicit assets and respond to what it describes as national security and foreign policy threats from Cuba. It says foreign individuals and companies that deal with parties designated under the order, or that operate in Cuba's energy, defense and related materiel, metals and mining, financial services, or security sectors, also face sanctions risk.

Under the action, all property and interests in property of the designated parties that are in the U.S. or under the possession or control of U.S. persons are blocked and must be reported to the Treasury Department's Office of Foreign Assets Control. Transactions by U.S. persons, or within or transiting the U.S., involving blocked property are prohibited unless they are exempt or specifically authorized by OFAC.

Implications for Cuba-linked business activity

GAESA is described by the administration as a military-controlled umbrella enterprise with reach across broad parts of the Cuban economy. U.S. officials say the group controls an estimated 40% or more of the island's economy, while public estimates cited in the announcement indicate its revenue may exceed three times the state budget and that it may control up to $20 billion in illicit assets.

The statement identifies Lastres as GAESA's executive president and says she oversees the management of the group's assets held internationally. It also says Moa Nickel SA, a joint venture between Sherritt International Corporation and Cuban state-owned La Compania General de Niquel, has benefited the regime through the exploitation of natural resources, including assets originally expropriated from U.S. persons and companies.

The administration says non-U.S. persons, including foreign financial institutions, should act cautiously in any dealings involving sanctioned parties because returning assets to a blocked person or moving them to another jurisdiction could create significant sanctions exposure. It adds that the broader Cuban Assets Control Regulations remain in force, continuing to bar persons subject to U.S. jurisdiction from dealing in property in which Cuba or a Cuban national has an interest unless authorized or exempt.

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