Cuban Military Uses SMEs to Launder US Oil Imports, Report Claims

What Happened

A new report details an alleged scheme where Cuba's military conglomerate, GAESA, is using small and medium-sized private enterprises (SMEs) as a front to import fuel from the United States.

This operation reportedly bypasses international sanctions and allows GAESA to control the fuel distribution network and foreign currency earnings.

Where and When

The scheme involves fuel imports from the U.S. to Cuba, with financial transactions occurring throughout 2026. The report highlights specific entities like Inmobiliaria CIMEX, FINCIMEX, and the Banco Financiero Internacional (BFI) as key players in the financial chain.

The overall context is the recent flexibilization by Washington regarding oil sales to private businesses in Cuba, a move GAESA appears to be exploiting.

Why It Matters

This alleged strategy is significant because it allows the Cuban military to circumvent U.S. sanctions and secure much-needed energy supplies, previously reliant on Venezuela. It also suggests GAESA is co-opting Cuba's nascent private sector for its own financial gain.

The operation channels foreign currency revenue through military-controlled financial institutions, maintaining liquidity for the armed forces while potentially hindering genuine independent entrepreneurship due to the high capital requirements.

What the Parties Say

The report was authored by economist Emilio Morales, president of Havana Consulting Group and vice-president of Cuba Siglo 21. He detailed how GAESA leverages SMEs for fuel importation logistics.

The report points to the financial entities involved, such as Banco Financiero Internacional and FINCIMEX, as being under military control and facilitating these transactions. No direct statements from GAESA or the U.S. government were cited regarding this specific report.

What Comes Next

The report suggests that the U.S. government's flexibilization on fuel sales to private entities is being exploited by GAESA. It indicates a continued reliance on this model to ensure energy supply and military liquidity.

Further observation will be needed to see if U.S. authorities address this alleged circumvention of sanctions and how it impacts the development of Cuba's private sector.