European firms pull out of Cuba as US sanctions target foreign operators

European companies are withdrawing from Cuba as new US sanctions targeting foreign firms doing business with state entities come into force, triggering concern across the continent’s tourism, shipping and energy sectors.

Spanish hotel groups Meliá Hotels International and Iberostar Group have begun pulling management and branding from dozens of properties, citing an “evolving geopolitical, social, legal, and economic environment,” Caliber.Az reports, citing foreign media.

French shipping firm CMA CGM and Germany’s Hapag-Lloyd have suspended operations to and from the island, warning of exposure to the US financial system.

According to Daniel Bernbeck, “Smaller companies might be easily wiped off the map,” while researcher Susanne Gratius said the situation could lead to a “kind of real isolation.”

The sanctions package from US President Donald Trump administration expands pressure on Cuba’s military-run GAESA conglomerate,” said analysts.

“GAESA virtually owns … the tourist sector,” said US Secretary of State Marco Rubio, adding that over half of Cuban hotels are tied to state subsidiaries.

Spain’s government, led by Pedro Sánchez, said it was “closely monitoring” developments, while Economy Minister Carlos Cuerpo called it a “commercial issue, but if we can help in any way, we will.”

European Commission officials said they were pursuing a “constructive dialogue” with Washington and Havana, but European lawmakers warned the bloc must act. Spanish MEP Leire Pajín said the “the U.S. embargo, which has repeatedly been condemned by the U.N. General Assembly” should be challenged.

French MEP Leïla Chaibi said Brussels was “behaving with the U.S. like a little dog,” reflecting criticism of the EU’s limited response as companies exit Cuba’s tourism-dependent economy.

The tightening sanctions are already reshaping Cuba’s tourism and logistics sectors, with major European operators exiting at speed to avoid financial penalties and exclusion from the US banking system. Industry analysts say the island’s already fragile economy, heavily reliant on foreign visitors and state-controlled conglomerates, risks further contraction as investment dries up.

The European Union has so far limited its response to monitoring developments and encouraging dialogue, reflecting its reluctance to confront Washington directly. With shipping routes disrupted and hotel management contracts being terminated, Cuba faces increasing isolation from its traditional European partners.

Further escalation could deepen shortages and reduce foreign currency inflows critical to imports of basic goods. Officials and analysts warn the outlook remains uncertain amid ongoing geopolitical tensions globally increasing.

By Aghakazim Guliyev