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The main Spanish hotel chains and financial entities operating in Cuba face the risk of million-dollar sanctions from the Trump administration following the implementation of a new sanctions framework that, for the first time, directly targets foreign companies working with the Cuban regime.
The Executive Order 14404, signed on May 1, radically expands the scope of the U.S. embargo by authorizing the Secretaries of State and Treasury to sanction any foreign company or individual involved in Cuba’s energy, defense, mining, financial services, or economic security sectors, or who engages in transactions with the island's government or sanctioned entities, as detailed by the international firm Squire Patton Boggs in a client note reported by ABC.
Until now, European companies without ties to the United States were largely shielded from direct sanctions. That shield has vanished.
Marco Rubio formally designated on May 7 the military holding GAESA —which according to Washington controls approximately 40% of the Cuban economy— along with its CEO Ania Guillermina Lastres Morera and the mining company Moa Nickel S.A.
The Office of Foreign Assets Control (OFAC) granted a deadline until June 5 for foreign companies and financial institutions to close all their operations with GAESA, under the threat of secondary sanctions.
The key risk for Spanish companies lies precisely with GAESA: almost all of Cuba's hotel infrastructure is controlled by Gaviota, its tourism arm, which makes these chains direct partners of the sanctioned conglomerate.
According to data from ICEX as of May 2025, Spanish tourism companies managed around 30,000 rooms in Cuba, with Spain being "the undisputed leader" in four- and five-star hotels.
The brands included are Meliá, Iberostar, Barceló, Roc, Valentín, NH, Blau, Axel, and Sirenis. In the financial sector, Banco Sabadell and an entity owned by Javier Botín called Alto Cedro also have a presence on the island.
Meliá has already closed 50% of its operational capacity in Cuba during the first quarter of 2026, with over 5,000 rooms out of service, an average occupancy of 34.1%, and a net profit that fell by 68%.
The most immediate effect on the international stage was led by the Canadian mining company Sherritt International, which on May 7th announced the immediate cessation of all its direct operations in Cuba and began the repatriation of employees, claiming that the executive order makes it "materially impossible" to maintain normal operations on the island.
José María Viñals, a partner at Squire Patton Boggs, warns that "from a legal perspective, this is a significant change as the United States is equipping itself with a weapon it can use as it wishes" and that "many companies will reconsider whether it is worth continuing" to operate in Cuba given the increased scrutiny from banks, insurers, and partners.
Ignacio Aparicio, managing partner of the Cuban Desk at Andersen, lists the specific concerns of companies: "The validity and continuity of their contracts with entities linked to Gaesa; the personal risk to their executives regarding entry visas to the U.S.; and the stance of their banks and insurers regarding ongoing operations. This is neither a hypothetical nor a distant risk, nor is it legally straightforward."
Aparicio anticipates a gradual and selective withdrawal of Spanish companies, although not complete, and warns that American pressure "places the Spanish government in an uncomfortable position with respect to Washington, adding a political dimension that companies cannot ignore when evaluating their strategy on the island."
Viñals concludes that these new sanctions will "further discourage investment in Cuba" and that "Europe will have to decide whether to protect European businesses and confront the United States," as it has some legal mechanisms to try to prevent compliance with potential sanctions against its companies.
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