Cuba faces mounting economic pressure as companies exit island

MIAMI — Cuba’s government continues to hold out despite facing fuel shortages, declining tourism and mounting pressure from the United States.

Read more Republicans debate limits on $1.8B Trump settlement in late-night Senate session

How long the government can withstand the economic strain — and what it will ultimately take for it to make changes — remains unclear.

The communist island is seeing an exodus of international companies. Hotels, along with Visa and Mastercard, are shuttering operations as they rush to meet an end-of-week deadline to avoid sanctions threatened by the Trump administration.

The latest economic blow targets Grupo de Administración Empresarial, known as GAESA.

“GAESA is an economic conglomerate created by Raul Castro while Fidel was still alive,” said Cuba analyst Andy Gomez.

The U.S. government believes the conglomerate controls billions of dollars in assets. It was created in the 1990s following the collapse of the Soviet Union and is run by the Cuban military apparatus.

Read more Man accused of striking parking enforcement specialist with vehicle while fleeing citation in Doral

“So the purpose of GAESA was to lift the economy, not just for the government but for the nation,” Gomez said.

Critics argue it evolved into something else.

“They own the tourist sector, they own mining, they own the gas stations. They own everything. So you have people literally starving, a power grid that hasn’t been maintained in 10 years, and yet you have this military government sitting on these assets,” saidU.S. Secretary of State Marco Rubio.

Gomez said he sees only one path forward.

“I see for them no way out but sitting down and negotiating with the United States,” Gomez said. “Now I say negotiate.”

But Gomez warned that any such process would take time.

“This cannot be done overnight,” he said.

“There is no Delcy Rodriguez in Cuba,” Gomez added.

Amid the worsening social and economic fallout, Cuban Deputy Prime Minister Oscar Perez Oliva Fraga, the grandnephew of Fidel and Raul Castro, is reportedly seeking business investments from Russia.

Read more Hollywood man accused of traveling to meet minor for sex