US sanctions trigger mass withdrawal of foreign firms from Cuba

An executive order signed on May 1 by the United States intensified pressure on Cuba by targeting the military‑linked conglomerate Gaesa. The order gave foreign companies until the following Friday to sever any ties with Gaesa or face secondary sanctions, including loss of access to the U.S. financial system.

Since the decree, a wave of withdrawals has swept the island. Canadian tour operator Blue Diamond halted all tourism activities; Spanish hotel groups Iberostar and Melia pulled out of dozens of hotels; Indonesia’s Archipiélago International is studying a total exit; French carrier CMA CGM and German Hapag‑Lloyd suspended freight bookings; and Canadian miner Sherritt exited its nickel‑cobalt operations. A foreign bank also cut its relationship with Cuba’s Fincimex, prompting the Cuban central bank to announce that Visa and Mastercard payments will be unavailable on the island from the weekend.

Cuban officials describe the measures as a “strategy of asphyxiation” against the Cuban people. Economists warn the exodus could make 2026 the country’s worst economic year in decades, underscoring the devastating impact of the sanctions on Cuba’s tourism, mining and transport sectors.