Sherritt Agrees to Sell 55% Stake as US Sanctions Pressure Targets Cuba's GAESA
Updated
Updated · EL PAÍS USA · May 30
Sherritt Agrees to Sell 55% Stake as US Sanctions Pressure Targets Cuba's GAESA
1 articles · Updated · EL PAÍS USA · May 30
Summary
Sherritt International disclosed a non-binding deal under which Gillon Capital would buy a 55% stake, in a move the report says was driven by U.S. pressure over ties to Cuba's military-run GAESA conglomerate.
GAESA sits at the center of that pressure: the opaque holding controls about 40% of Cuba's economy, dominates tourism and foreign-currency businesses, and was sanctioned again by Washington in early May.
The warning extends beyond mining to Spanish hotel operators. Of Gaviota's 120 hotels, 62 are managed by Spanish chains, while outages, supply shortages and weaker Canadian air links have already forced many closures.
GAESA's finances have also deteriorated. Leaked accounts showed $14.5 billion in liquid assets in 2024, but the Economist Intelligence Unit said reserves had fallen below $1 billion by the start of 2026.
The episode underscores how U.S. sanctions pressure could reshape Cuba's foreign business landscape, potentially pushing existing partners out of sectors long controlled by the military conglomerate.
As U.S. sanctions oust European hotels, are American giants like Marriott poised for a controversial Cuban takeover?
With foreign partners fleeing and cash reserves gone, can Cuba's military-run economy survive this U.S. financial siege?
Sherritt’s High-Stakes Exit: U.S. Sanctions, Gillon Capital, and the Future of Foreign Investment in Cuba
Overview
Canadian mining company Sherritt International Corp. has entered into a non-binding agreement with Gillon Capital LLC, a family office linked to Ray Washburne, a former Trump administration official. This move comes as Sherritt faces increasing U.S. sanctions targeting its Cuban operations. The deal is seen as a strategic response to the evolving sanctions regime, leveraging Gillon Capital’s political connections to help Sherritt navigate complex compliance risks. The urgency of the agreement highlights how geopolitical pressures are forcing companies like Sherritt to seek new ownership structures to protect their business interests in Cuba.