By The Rio Times | Created at 2026-09-04 09:36:34 | Updated at 2026-09-04 10:18:51
1 hour ago
Cuba · POLITICS
Key Facts
- —What happened US Treasury sanctioned Raúl Castro’s grandson and five Cuban state firms on September 3, 2026.
- —How big The action targets one individual and five entities, including a bank and an oil trader.
- —The catch Cuba had just widened rules for private chains, but US sanctions still block most American business.
- —Who it hits Fidel Ernesto Castro Calis, grandson of Raúl Castro, and state-linked firms in banking and energy.
- —What comes next Designated persons and firms face asset freezes and US travel bans.
Washington hits Cuba’s state elite and key firms. Havana, days earlier, opened retail and restaurant chains to private owners.
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New US sanctions hit Cuba on September 3, 2026, naming a grandson of Raúl Castro and five state firms. They landed days after Havana widened the space for private business.
US Sanctions Target Castro Family and State Firms
On September 3, 2026, OFAC added Fidel Ernesto Castro Calis to its Specially Designated Nationals list. He is Raúl Castro’s grandson and the son of Alejandro Castro Espín, who Treasury sanctioned in June 2026.
The action also designated five Cuban state-linked entities: Banco Exterior de Cuba, Comercial Cupet S.A., Nicarotec, Cexni and Abapet. They operate in banking, oil trade, mining and nickel trade, according to OFAC’s published list.
The OFAC entry reads: “CASTRO CALIS, Fidel Ernesto, Cuba; DOB 16 May 1995; nationality Cuba; Gender Male.” It links him to his father, Alejandro Castro Espín.
Who Is Fidel Ernesto Castro Calis
Castro Calis was born on May 16, 1995, making him 31 years old. He is one of two known sons of Alejandro Castro Espín, a former Cuban intelligence and security adviser.
His father is a son of Raúl Castro, Cuba’s former president and Communist Party leader. That makes Fidel Ernesto Castro Calis a grandson of Raúl Castro, per the State Department fact sheet.
His brother, Raúl Alejandro Castro Calis, was designated alongside their father in June 2026. OFAC designated Castro Calis as an adult family member of a previously sanctioned official.
The Legal Authority Behind the Sanctions
The designation relies on Executive Order 14404, signed by President Trump in May 2026. It targets people responsible for repression in Cuba and threats to U.S. national security.
OFAC cited Section 2(a)(i)(I) of that order for Castro Calis. That clause covers adult family members of people already designated under the same order.
The same day, OFAC issued Cuba General License 4A. It authorizes certain transactions for third-country diplomatic and consular missions operating in Cuba.
What the Sanctions Mean
Being on the SDN list freezes U.S.-based assets and bars American citizens and companies from business with the designee. It also generally prohibits U.S. travel for the individual.
The U.S. embargo on Cuba, in place since 1962, restricts most trade and financial transactions between the two countries. These new designations extend that policy to specific people and companies linked to the Cuban government.
Foreign banks and firms that keep dealing with a designee can also face U.S. penalties. That secondary exposure often discourages business with sanctioned entities beyond U.S. borders.
The Five Sanctioned Entities Explained
Banco Exterior de Cuba, founded in 2000, handles foreign trade and international transactions for the Cuban state. Comercial Cupet S.A., founded in 1991, runs wholesale commerce for Cuba’s fuel sector.
Abapet imports machinery and equipment for the petroleum industry. Cexni handles wholesale trade linked to Cuba’s nickel industry, while Nicarotec provides support services for mining.
All five entities have operated for decades under different Cuban ministries. Each now appears on OFAC’s Specially Designated Nationals list for the first time.
US Officials’ Statements
U.S. officials described the action as targeting Cuba’s elites, financial channels and resource-exploitation networks. The designations cover banking, energy and mining-linked entities, officials said.
Secretary of State Marco Rubio said the designations reflect “President Trump’s unwavering vision for a free Cuba.” A State Department fact sheet named Castro Calis as a grandson of Raúl Modesto Castro Ruz.
Cuba’s Response to the Sanctions
Cuba’s government rejected the sanctions and called them illegitimate, CiberCuba reported. Foreign Minister Bruno Rodríguez defended the designated officials and companies in public remarks.
Cuban authorities had already framed their private-sector opening as a response to U.S. pressure. In July 2026, officials said the reforms aimed to help the economy withstand American sanctions, according to Arab News.
Cuba’s Private Business Opening
On August 28, 2026, Cuba published rules authorizing private retail and restaurant chains nationwide. The rules let micro, small and medium firms, cooperatives and foreign investors run one brand across multiple provinces.
The measures appeared in Decree 167 ‘On Domestic Trade’ and Resolution 15/2026, both in Official Gazette No. 69. Resolution 15/2026 also relaxed wholesale trade rules for private MIPYMES and non-agricultural cooperatives.
The new chains may sell goods in both Cuban pesos and foreign currency. Regulators require registered businesses to display permits and identify their operator type.
When the New Trade Rules Take Effect
Decree 167 takes effect on September 4, 2026, seven days after publication. A companion measure, Decree 168, updates Cuba’s Central Commercial Registry for the new chains.
Resolution 23 sorts the new chains into three categories: high-end, mid-level and neighborhood stores. It also defines four activity types, including retail, dining, lodging and services.
Registered businesses must use electronic payment systems accessible to customers. The rules apply equally to state and private operators of retail and restaurant networks.
Broader Reforms in Cuba
The same Gazette issue carried Decree-Law 129/2026, which repealed a 1994 rule on seizing goods for trade-registry violations.
A separate Council of State decree-law, issued August 19 and published September 2, removed the 100-worker cap on private firms. It updated Decree-Laws 88, 89 and 90 of 2024.
Cuba’s Economic Reforms Package
The private-business rules form part of a wider package of 176 economic measures. Cuban President Miguel Díaz-Canel’s government approved the package in June 2026 to address the economic crisis.
Officials have floated further steps, including new forms of financial services, though details remain undefined. The package also revisits limits on how large private firms can grow.
MIPYMES Growth Since 2021
Cuba first allowed private micro, small and medium enterprises in August 2021, capped at 100 employees. By 2023, roughly 8,000 such firms had registered, according to published economic data.
That reform built on an earlier opening of self-employment in 2011. More than 400,000 Cubans had registered as entrepreneurs under that earlier system.
Private-sector employment has grown alongside those changes. It rose from about 23 percent of jobs in 2000 to 35 percent by 2023.
Cuba’s Economic Crisis
Cuba’s national power grid collapsed in March 2026, leaving millions without electricity for days. Blackouts, fuel shortages and medicine shortages have continued through the year, as reported by UPI.
Fuel shortages have disrupted transport and farming across the island for months. Cuba’s school year still began in late August despite the ongoing energy crisis, UPI reported.
The government has cited the crisis as a reason for its economic reforms. Officials say a wider private sector could ease shortages and create jobs.
Contrast Between US and Cuban Actions
The two announcements came within days of each other. Washington tightened pressure on Havana’s state sector while Havana moved to widen its private one.
Analysts say the timing appears coincidental, since Washington and Havana work on separate calendars.
Frequently Asked Questions
What are the new US sanctions on Cuba?
On September 3, 2026, the US Treasury sanctioned Raúl Castro’s grandson and five state firms. They are added to the SDN list, freezing US assets and banning US business.
Who is Fidel Ernesto Castro Calis?
He is a grandson of Raúl Castro and son of Alejandro Castro Espín. He was born on May 16, 1995, and is now sanctioned as an adult family member.
What did Cuba announce on August 28, 2026?
Cuba published rules authorizing private businesses to operate retail and restaurant chains nationwide. This lets MIPYMES and cooperatives run multiple locations.
How do the sanctions affect ordinary Cubans?
The sanctions target specific individuals and firms, not the general population. However, they may worsen economic conditions by restricting trade and financial flows.
Sources: Arab News; CiberCuba; Deutsche Welle; Infobae; MENAFN; Reuters/Internazionale; RIA Novosti; UPI; U.S. Department of State; OFAC.
