European Firms Exit Cuba as US Expands Sanctions to Foreign Ties With State Entities
Updated
Updated · POLITICO Europe · Jun 5
European Firms Exit Cuba as US Expands Sanctions to Foreign Ties With State Entities
1 articles · Updated · POLITICO Europe · Jun 5
Summary
Spanish hotel groups Meliá and Iberostar have pulled management and branding from dozens of Cuban properties, part of a wider retreat by European companies from the island.
Friday's U.S. move broadened the embargo's pressure from Havana itself to foreign businesses dealing with Cuban state entities, especially the military-run GAESA conglomerate.
Meliá said an "evolving geopolitical, social, legal, and economic environment" drove its decision, underscoring how sanctions risk is reshaping long-established European operations in Cuba.
The pullback hits some of Cuba's best-known beach resorts and signals a deeper rupture in EU business ties to the island as Washington tightens enforcement.
As U.S. sanctions force European giants out, why is Washington opening a door for Cuba's private sector?
With its luxury hotels now empty, can Cuba's tourism-dependent economy survive the U.S. pressure campaign?
The 2026 Cuban Crisis: U.S. Executive Order 14404, Foreign Divestment, and the Deepening Humanitarian Emergency
Overview
In early June 2026, Cuba faced a dramatic economic shift as foreign companies rapidly exited the country. This exodus was triggered by U.S. Executive Order 14404, which imposed secondary sanctions on foreign businesses working with GAESA, a powerful Cuban military conglomerate. As the U.S. set a strict deadline for divestment, major firms like Meliá Hotels International withdrew from their Cuban operations to avoid losing access to American banks and facing other penalties. The looming threat of sanctions and financial isolation forced companies to choose between their Cuban investments and their global business interests, deepening Cuba’s economic crisis.