Why Cuba is Different Than Venezuela
Cuba is governed by a communist regime where the military, particularly the Revolutionary Armed Forces (FAR), functions as a political, economic, and administrative pillar of the state.
The military is considered the most powerful institution in Cuba, managing a substantial portion of the economy.
Through its enterprises, the military controls approximately 60 percent of Cuba's economic sectors, including luxury hotels, retail chains, airports, banks, and strategic ports.
GAESA, or Grupo de Administración Empresarial S.A., is the largest military-controlled company in Cuba and serves as the country's cash register, hoarding money away from Cuba's central bank and funneling it back to the military ruling class.
The Cuban military's economic activities generate revenue that is used to strengthen its control, support the Cuban Communist Party's power, and fund Cuba's involvement in Venezuela.
The U.S. government has implemented sanctions to target these military-controlled entities, including GAESA, FINCIMEX, and Kave Coffee S.A., to limit transactions that disproportionately benefit the military and the government.
These regulations generally prohibit U.S. citizens and entities from engaging in financial transactions with Cuban entities tied to the communist Cuban government.
May 25, 2026
Gaesa is a business conglomerate operated by the Cuban Revolutionary Armed Forces, and it’s even more powerful than the island’s communist party.
