Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeNewsEconomyVisa, Mastercard join exodus from Cuba on expanded U.S. sanctionsThe Trump administration had signalled that foreign companies had until Friday to unwind operations with CubaAuthor of the article:Last updated 25 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.Cuba tied its decision to suspend credit card transactions directly to U.S. sanctions unveiled last month that allow Washington to target almost any foreign individual or company that does business on the island. Photo by Xinhua News Agency/Getty ImagesCuban revolutionary leader Raúl Castro got some unwelcome news for his 95th birthday on Wednesday: more corporations abandoning the Caribbean country under United States pressure.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorVisa Inc. and Mastercard Inc. transactions will be suspended on the island as of the end of this week due to President Donald Trump’s latest sanctions, the central bank said in a statement carried by state media.Earlier, Meliá Hotels International SA announced that it’s pulling its brands and “immediately” terminating its operating agreements at 15 hotels. While the Spanish company didn’t cite U.S. sanctions specifically, it said the decision was due to Cuba’s “geopolitical, social, legal and economic context.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againTrump’s administration has been ratcheting up pressure on Havana since the start of the year, cutting off its supply of Venezuelan oil and threatening tariffs on any other country that sent fuel to Cuba. Several major airlines suspended service after being told they couldn’t refuel on the island, and countries such as Canada and the United Kingdom have warned their citizens to avoid unnecessary travel.Tourism, once one of the backbones of the Cuban economy, has been gutted. International travel to the island hit a two-decade low last year and is on track to perform even worse in 2026. From January through April, the island received 328,600 visitors, down 56 per cent versus the same period last year, according to Cuba’s statistics agency.Meliá said Wednesday’s announcement would have a limited impact on its bottom line because many of the hotels were already shuttered “due to the energy challenges and the decline in demand.”The company isn’t alone. On Monday, Royalton Hotels & Resorts Ltd. said it was shutting its Cuban subsidiary, while Iberostar Group also quit operating a dozen hotels in Cuba, according to multiple reports.Cuba tied its decision to suspend credit card transactions directly to U.S. sanctions unveiled last month that allow Washington to target almost any foreign individual or company that does business on the island. The new measures singled out Grupo de Administración Empresarial SA, the conglomerate known as Gaesa that’s run by Cuba’s military and dominates much of the island’s economy, including the tourism sector.The foreign financial institution that processed Visa and Mastercard transactions for Cuba said on Tuesday it was terminating its relationship with Financiera Cimex SA, Gaesa’s banking arm, according to the central bank. Cash, domestic prepaid cards, Mir and UnionPay cards will remain available for foreign-currency transactions, it added.The Trump administration had signalled that foreign companies had until Friday to unwind operations with the military conglomerate or face scrutiny by the U.S. Treasury Department’s Office of Foreign Assets Control.Sanctions have also hit the mining industry. They threw Sherritt International Corp. into turmoil, prompting the Canadian nickel producer to cut its long-running ties with the Cuban government and partner instead with a former adviser to Trump.“With this latest round of secondary sanctions targeting Gaesa, the Trump administration has found the right formula to push foreign hotel chains against a wall with no real viable alternative,” Paolo Spadoni, a professor at Augusta University in Georgia who studies the island’s economy, said by text message.For Castro — who led the 1959 communist revolution with his late brother Fidel and remains one of Cuba’s most powerful figures — the corporate exodus only adds to the pressure.The Department of Justice unveiled murder charges against him last month and has repeatedly said that he and the island’s leadership needs to step down to make room for economic change. Though negotiations are ongoing, the U.S. has moved an aircraft carrier strike group into the Caribbean.Cuba’s state-run newspapers were largely devoted to celebrating Castro’s birthday and denouncing continued U.S. threats on Wednesday, as government officials penned odes to the aging leader on social media.“Your long life is a triumph of the love you’ve given your people, and which your people return to you today,” President Miguel Díaz-Canel said in a post on X. “No hatred can succeed against this armoured shield of endearing affection.”—With assistance from Rodrigo Orihuela. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.