US sanctions Cuban firms and Raul Castro's grandson as Cuba unveils reforms

September 4, 2026 at 06:45 AM2 min

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The US State Department announced sanctions on Thursday against several Cuban companies and Fidel Ernesto Castro, grandson of former leader Raul Castro. Cuba responded with 34 pages of pro-market reforms, including allowing private tour agencies and easing foreign bank account rules. The measures come amid a US campaign of economic pressure and threats of military intervention.

Key Facts

The US State Department sanctioned several Cuban companies and Fidel Ernesto Castro, 31-year-old grandson of Raul Castro, on Thursday.
Cuba announced 34 pages of legal changes to loosen state control in tourism and other industries.
US Secretary of State Marco Rubio said Cuba's Communist regime elites preside over a failed state where ordinary Cubans go hungry.
In June, Cuba passed 176 free-market reform measures, its biggest in decades.
UN High Commissioner for Human Rights Volker Turk said in June that US restrictions were directly harming Cubans and called for their end.

US Sanctions

The US State Department announced on Thursday that it was sanctioning several Cuban companies and Fidel Ernesto Castro, the 31-year-old grandson of former leader Raul Castro. US Secretary of State Marco Rubio said in a social media post that Cuba's Communist regime elites preside over a failed state where ordinary Cubans go hungry. Since January, President Donald Trump has undertaken a heightened campaign to weaken Cuba's government, including escalating sanctions and a de facto fuel blockade. Rubio accused Cuba of seeking to export subversive Marxist ideology to the United States and other states in the Western Hemisphere.

Cuban Reforms

Cuba announced further reforms on Thursday, with 34 pages of legal changes designed to loosen regulation and state control in industries like tourism. Under the new rules, private companies will be able to establish tour and travel agencies separate from the Cuban government. Private companies will not have to contract employees through state agencies, and some domestic investors will find it easier to open foreign bank accounts. In June, Cuba passed its biggest free-market reforms in decades, with 176 new measures, and conducted prisoner releases as a humanitarian and sovereign gesture.

Humanitarian Impact

Critics warn that the sanctions, combined with the ongoing energy blockade, have pushed the country's power grid and healthcare systems to the point of collapse. Volker Turk, the UN high commissioner for human rights, stated in June that such restrictions were directly harming Cubans and called for their end. Turk said children are dying because doctors lack access to essential medical supplies and medicines, calling the situation unacceptable.