The U.S. government is reportedly preparing to charge Raúl Castro, the 94-year-old former First Secretary of the Communist Party of Cuba, as attention turns to GAESA, the military-run state enterprise that controls much of Cuba's economy. GAESA, which Raúl Castro helped establish, monopolizes Cuba's internet services and operates around 100 hotels, leading to concerns about the privatization of the economy.
According to reports from the New York Times and CNN on May 15, GAESA was founded in 1995 to strengthen Cuba's defense sector during a time of economic turmoil following the collapse of the Soviet Union. At that time, Raúl, then Minister of Defense, persuaded his brother Fidel Castro to allow the military to create a company to manage economic interests, a move aimed at addressing challenges such as paying soldiers' salaries.
As Cuba's economy began to recover in the late 1990s, GAESA expanded its influence. While the military initially reinvested GAESA's profits into public services like hospitals, education, and food distribution, the New York Times now characterizes GAESA as a tool for consolidating power within the Castro family.
Today, GAESA has transformed into a major conglomerate, controlling 40% to 70% of the Cuban economy. Through its intermediary company CIMEX, a state-owned import-export firm, GAESA operates Cuba's largest private bank, Banco Financiero Internacional, as well as the country's sole internet service provider, hundreds of gas stations, and supermarkets. It also directly manages numerous travel agencies and hotels.
However, GAESA's financial status remains opaque, with no records in government budgets despite being a military entity. A former government auditor who served for 14 years was reportedly fired in 2024 after stating he had no knowledge of GAESA's finances. The New York Times reported that GAESA is controlled by the Castro family, with General Alberto Rodríguez-Calleja, Raúl Castro's son-in-law, managing it from 2011 until his death in 2022. General Ania Guillermina Lastres Morera has since taken over, reportedly having connections with Raúl Castro's grandson, Raúl Guillermo Rodríguez Castro.
Flight records from 2024 indicate that the two traveled together on a private jet to Panama. Guillermo Castro was part of the Cuban delegation that met with U.S. Secretary of State Marco Rubio earlier this year, alongside Oscar Pérez-Oliva Fraga, the great-grandson of the Castro brothers.
CNN noted that when Raúl Castro resigned as First Secretary of the Communist Party in 2021, it seemed to mark the end of 60 years of Castro family rule, but many Cubans still believe Raúl wields "shadow power."
The U.S. State Department imposed sanctions on GAESA on May 7, aiming to cut off financial resources for the Castro family and military elites. The sanctions freeze GAESA's assets in the U.S. and prohibit transactions between GAESA and U.S. citizens, as well as any transactions involving U.S. territory. The State Department indicated that additional measures would be implemented in the coming weeks. CBS reported on May 15 that the U.S. government is preparing to charge Raúl Castro in connection with the 1996 shooting down of four aircraft operated by the humanitarian group Brothers to the Rescue.
* This article has been translated by AI.
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