Photo by Gary Raynaldo /  © Diplomatic Times  / The Habana Libre Hotel, located in the Vedado section of Havana, used to be the American-owned  Havana Hilton before Fidel Castro came to power and confiscated it along with other US properties in Cuba. The hotel, currently managed by Spain’s Melia chain,  could become a target of U.S. litigation.

By Gary Raynaldo     DIPLOMATIC  TIMES

The  U.S. Trump administration Monday added three Cuban military-owned companies to its Specially Designated Nationals and Blocked Persons List including Grupo de Administración Empresarial SA (GAESA), FINCIMEX, and Kave Coffee S.A.  All property and interests in property of these entities that are in the United States or in the possession or control of persons subject to U.S. jurisdiction continue to be blocked and must be reported to OFAC, according to a statement from Secretary of State Michael Pompeo.   GAESA is the Cuban military’s largest company, which controls large portions of Cuba’s economy for the military’s benefit, Pompeo said.   “Cuban military-controlled FINCIMEX funnels remittances through channels that disproportionately benefit the Cuban military.  Kave Coffee S.A., a coffee company domiciled in Havana and incorporated in Panama, is part of an international network of Cuban-owned companies maintained by the Cuban military and used to evade the U.S. embargo,”  according to  Secretary of State Pompeo.  On November 23, Western Union ceased operating in Cuba after the US government included Fincimex, which was the Cuban counterpart of the US money transfer firm, on the  “black list”.

“The revenue generated from the Cuban military’s economic activities is used to entrench the Cuban military’s control, prop up the Cuban Communist Party’s power, oppress the Cuban people, and fund Cuba’s interference in Venezuela.  Today’s action demonstrates the United States’ long-standing commitment to ending economic practices that disproportionately benefit the Cuban government or its military, intelligence, and security agencies or personnel, at the expense of the Cuban people.  It also demonstrates the United States’ commitment to disrupting Cuba’s malign support for the illegitimate Maduro regime in Venezuela.”

-U.S. Secretary of State Pompeo 

US Government sanctioned Cuban General Luis Alberto Rodríguez López-Callejas 

The US government sanctioned Cuban General Luis Alberto Rodríguez López-Callejas,   one of the most powerful figures in Cuba who heads the Grupo de Administración Empresarial SA (Gaesa), the business group of the Revolutionary Armed Forces (FAR) (cubanstudiesinstitute.)

In September,  the US government sanctioned Cuban General Luis Alberto Rodríguez López-Callejas, reputedly one of the most powerful figures in Cuba,  who heads the Grupo de Administración Empresarial SA (Gaesa), the business group of the Revolutionary Armed Forces (FAR).  Secretary of State Pompeo said that “Rodríguez López-Callejas is the head of the Cuban military-owned consortium Grupo de Administración Empresarial SA (GAESA),” which manages Cuba’s economic jewels (tourism, communications, real estate, commerce and oil, among others).    

“In Cuba, renting a car, sleeping in a hotel, diving or buying in a store has one thing in common: the companies that provide these services belong to the Grupo Empresarial Empresarial S.A. (GAESA) led by the Revolutionary Armed Forces, reported dpa news. GAESA is the largest Cuban holding company and includes a conglomerate of more than 50 companies, all directed under the laws of the market and chaired by brigadier General Luis Alberto Rodríguez López-Callejas, ex-son in law of President Raul Castro,” the Havana Times. 

The following entities are being identified on the List of Specially Designated Nationals and Blocked Persons by OFAC pursuant to the Cuban Assets Control Regulations (CACR), 31 C.F.R. part 515.

GRUPO DE ADMINISTRACIÓN EMPRESARIAL S.A.

Grupo de Administración Empresarial S.A. (GAESA)

is a Cuban military-controlled umbrella enterprise with interests in the tourism, financial investment, import/export, and remittance sectors of Cuba’s economy. GAESA’s portfolio includes businesses incorporated in Panama to bypass CACR-related restrictions.

FINANCIERA CIMEX S.A.

Financiera Cimex S.A. (FINCIMEX) is a financial investment and remittance company owned by GAESA and incorporated in Panama. FINCIMEX is authorized by the Central Bank of Cuba to finance export operations, conduct financial leasing operations, and handle commercial distribution of remittance cards.

KAVE COFFEE, S.A.

Kave Coffee, S.A. (Kave) is a coffee company domiciled in Havana, Cuba, and incorporated in Panama. Kave is an indirect subsidiary of GAESA and serves as a leading commodity company based around the nationalized “Cubita” coffee brand.

GAESA and FINCIMEX are also listed on the State Department’s List of Restricted Entities and Subentities Associated with Cuba (“Cuba Restricted List” or “CRL”).  The CRL is a list of entities and subentities under the control of, or acting for or on behalf of, the Cuban military, intelligence, or security services or personnel with which direct financial transactions would disproportionately benefit such services or personnel at the expense of the Cuban people or private enterprise in Cuba.      “The Trump administration remains committed to targeting the Cuban regime for its malign behavior and attempts to circumvent United States sanctions,” said  Treasury Secretary Steven T. Mnuchin.