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 he has influenced behind the scenes. GAESA, which Raúl Castro helped establish, has been criticized for monopolizing Cuba's internet services and operating around 100 hotels, effectively privatizing parts 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, who was the defense minister, persuaded his brother Fidel Castro to allow the creation of a military-run enterprise to manage economic interests, a response to challenges such as paying soldiers' salaries after the loss of the Soviet Union as Cuba's largest trading partner.
As Cuba's economy began to recover in the late 1990s, GAESA expanded its influence. While the military initially reinvested GAESA's profits into national services like hospitals, education, and food distribution, The New York Times now describes GAESA as merely a tool for the Castro family to consolidate power.
Today, GAESA has transformed into a major conglomerate, controlling 40% to 70% of the Cuban economy. It operates through CIMEX, a holding company, and manages Cuba's largest private bank, Banco Financiero Internacional, as well as the country's sole internet provider, hundreds of gas stations, supermarkets, and numerous hotels and travel agencies.
However, GAESA's financial status remains shrouded in secrecy, and despite being a military entity, it is not recorded in any government budget. 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. Following his death, General Ania Guillermina Lastres Morera took over, reportedly having ties to Raúl Castro's grandson, Raúl Guillermo Rodríguez Castro. In 2024, flight records indicated that the two traveled together to Panama on a private jet. Guillermo Castro was part of the Cuban negotiating team during a meeting with U.S. Secretary of State Marco Rubio earlier this year, which also included Oscar Pérez-Oliva Praga, 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, aimed at cutting 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 American citizens, as well as any transactions involving the U.S. 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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