U.S.. Secretary of State Marco Rubio has launched a scathing critique of Cuba's powerful state-run conglomerate GAESA, describing it as a corrupt 'state within a state' that hoards wealth while ordinary Cubans suffer.

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Rubio's statement before the Senate Foreign Relations Committee marked a significant escalation in the U.S. stance on Cuba, tying humanitarian relief to political transformation. The move comes after months of increasing tensions between the two nations.

GAESA, founded in 1995 by former President Raúl Castro, is estimated to control 40-70% of the economy through its arms in tourism, retail, and finance. the conglomerate's business model extracts money from both tourists and citizens through goods and services , embedding graft within its operations.

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The U.S. administration's efforts to engage directly with the Cuban people rather than the regime have been met with skepticism by Cuban authorities. Havana defended GAESA as a necessary, efficient structure designed to circumvent the decades-long U.S. economic blockade, arguing that its secrecy is a practical requirement for survival under sanctions.

GAESA's exact scale is obscured by a lack of transparency, but analysts estimate it controls between 40% and 70% of Cuba's economy. Its various arms, likened to an octopus's tentacles, span tourism through Gaviota, retail via CIMEX, and finance through FINCIMEX.

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The recent collapse of tourism due to the U.S. oil blockade and secondary sanctions has severely wounded GAESA, triggering an exodus of foreign tourism partners. U.S. experts affirm Rubio's assessment that GAESA operates as a corrupt body siphoning wealth for a tiny elite, though they stop short of labeling Cuba a full kleptocracy like Venezuela.

The future of Cuba , therefore , appears tied to whether GAESA can be reformed or dismantled,a prospect that remains a central point of contention in U.S.-Cuba relations.