How do the new U.S. sanctions affect businesses of the Cuban regime?

The new sanctions on Cuban companies and organizations announced by the U.S. State Department this Monday intensify the economic and financial pressure on the regime in Havana.

The official statement includes 10 entities linked to both the repressive apparatus and strategic sectors of the economy, which have been added by the Office of Foreign Assets Control (OFAC) of the Department of the Treasury to the List of Specially Designated Nationals and Blocked Persons (SDN).

Although the announcement from the State Department has a strong political component, its practical effects may complicate the international operations of the sanctioned entities and increase the risks for foreign companies and banks that maintain relationships with them.

The designated entities are:

• Militia of Territorial Troops (MTT).
• Association of Combatants of the Cuban Revolution (ACRC).
• Antillian Export Corporation (ANTEX S.A.).
• Rapid Response Brigades.
• ENETEC S.A.
• COREYDAN S.A.
• Foreign Trade Business Group (GECOMEX).
• Superior Organization of Business Management CAUDAL S.A.
• Port Maritime Transport Business Group (GEMAR).
• Ministry of Tourism of Cuba (MINTUR).

According to the statement, the main implications of these sanctions are:

• Asset freezing: all property and financial interests of sanctioned entities located in the United States or under the control of U.S. persons are frozen.
• Extension of the blockade to linked companies: companies that are 50% or more owned by one or more of the sanctioned entities are also blocked.
• Prohibition of Transactions: U.S. citizens, companies, and institutions will not be able to engage in economic or financial operations with the designated entities, unless authorized by the Office of Foreign Assets Control (OFAC).
• Risk to third parties: companies, banks, and foreign financial institutions that do business with these entities may be exposed to U.S. sanctions, especially if they operate in sectors such as energy, shipping, financial services, or security.
• Greater financial isolation: inclusion on the List of Specially Designated Nationals and Blocked Persons (SDN) often makes it difficult to access banks, insurers, suppliers, and international business partners, even outside of the United States.

In practice, these measures could complicate access for Cuban state-owned enterprises to financing, insurance, banking services, and contracts with international suppliers.

The impact will also depend on the response of banks, companies, and foreign governments, many of which choose to avoid any relationship with sanctioned entities to reduce legal and financial risks.

The State Department asserts that the aim of these sanctions is to limit the sources of funding for the Cuban regime and to impact the structures that, according to Washington, support repression and activities deemed a threat to the national security of the United States.

This new round of sanctions is part of an offensive that began with the signing of Executive Order 14404 on May 1, 2026. At that time, President Donald Trump expanded the legal framework to pressure strategic sectors in Cuba and foreign companies operating with designated entities.