Marco Rubio says a deal with Cuba is ‘not likely’
Secretary of State Marco Rubio said the chances of a negotiated peaceful agreement between the United States and Cuba are “not high.”
The powerful military conglomerate GAESA is back at the center of the U.S.-Cuba conflict after Secretary of State Marco Rubio publicly accused the group of controlling the island’s economy and enriching us as millions of Cubans face power outages, food shortages, and an unprecedented economic crisis.
Tensions escalated this week after U.S. immigration agents arrested Addis Lastres Morella, the sister of GAESA’s current executive chairman, in Florida, according to U.S. Immigration and Customs Enforcement.
The incident comes as Washington is debating new sanctions and possible measures against figures close to Cuban power, amid increasing pressure from President Donald Trump’s administration on Havana.
What is GAESA and why does it control so much of Cuba’s economy?
GAESA stands for Group of Business Administration SA, a conglomerate controlled by the Cuban Revolutionary Armed Forces and created in the 1990s under the leadership of then-Minister of Defense Raul Castro. Over the years, the group has become one of the most powerful economic actors on the island.
The conglomerate controls luxury hotels, supermarkets, gas stations, money transfer operations, Mariel Port, and one of the country’s most important commercial banks. Although the Cuban government rarely speaks publicly about GAESA, U.S. analysts and officials estimate that the group could control between 40% and 70% of Cuba’s economy. According to Reuters, there are no verifiable official figures on the conglomerate’s true financial scope.
One of the most visible symbols of GAESA’s power is the so-called K Tower in Havana. It is a 42-story building associated with the conglomerate’s operations and is considered the tallest in Cuba. The luxury hotel in the complex was completed in 2025, at a time when tourism on the island was in sharp decline.
Why does Marco Rubio and the US blame GAESA for the Cuban Missile Crisis?
In a message to the Cuban people, Rubio accused GAESA of acting as a “state within a state,” asserting that the group is focusing its interests on strategic areas while the population faces power outages and shortages of fuel and food.
The US government says profits from the country’s most profitable industry end up under military control, benefiting elites close to power. For years, the U.S. government has imposed sanctions on companies associated with GAESA, including restrictions affecting American visitors to hotels managed by GAESA.
According to a report by Reuters, the Cuban government denies these accusations and insists that the real cause of the economic crisis is the US trade and financial embargo. Cuban authorities and diplomats on the island have recently noted that energy sanctions and restrictions promoted by the U.S. government have caused “energy suffocation” with serious social and economic consequences.
The lack of transparency surrounding GAESA is also spurring debate. The conglomerate’s finances are not publicly listed in Cuba’s state budget, and Cuban officials have historically defended their secrecy on grounds of national security and protection from U.S. sanctions.
Arrest of relatives of GAESA leader heightens pressure between US and Cuba
Political tensions escalated after ICE confirmed the arrest in Florida of Ania Guillermina Lastres-Morera’s sister, Addis Lastres-Morera, current executive president of GAESA and Brigadier General of the Cuban Military Organization.
Rubio said Morella worked with the Cuban government to manage real estate assets. U.S. officials assured that their presence on U.S. territory is a threat to U.S. national interests and foreign policy. Previously, Cuban officials in Washington, London and Rome had not publicly responded to requests for comment on the accusations.
Rubio also said in Miami that Cuba was a “national security threat” to the United States and said the chances of a peaceful agreement between the two governments were “not high.”
Cuban Foreign Minister Bruno Rodriguez accused U.S. officials of spreading “lies” and denied that Cuba was a threat to the U.S. government.
What could happen next for the United States and Cuba?
The coming weeks could be decisive for relations between Washington and Havana. The Trump administration maintains economic and diplomatic pressure on Cuba, but sanctions against officials and entities associated with GAESA have expanded.
A focus on military conglomerates could tighten fiscal restrictions, further impact tourism, and increase internal pressure on the Cuban government.
It also remains to be seen whether the tensions will lead to new negotiations, further sanctions or political hardening that will deepen the island’s economic and migration crisis.
Contributed by: USA TODAY and Reuters
Boris Q’va is a national Spanish language trends news reporter for Connect/USA TODAY Network. You can follow him on X as @ByBorisQva or write to him at BBalsindesUrquiola@gannett.com.
