Visa and Mastercard Suspend Operations in Cuba
Visa Inc. and Mastercard Inc. will suspend transactions in Cuba at the end of this week due to the latest sanctions imposed by President Donald Trump's administration, according to a statement from Cuba's central bank carried by state media. The move adds to a growing exodus of foreign companies from the island.
Cuba's central bank tied the suspension directly to U.S. sanctions unveiled last month, which allow Washington to target almost any foreign individual or company doing business on the island. The sanctions specifically singled out Grupo de Administración Empresarial SA (Gaesa), a conglomerate run by Cuba's military that dominates much of the economy, including tourism.
Meliá Hotels Withdraws
Earlier, Meliá Hotels International SA announced it is pulling its brands and immediately terminating operating agreements at 15 hotels. While the Spanish company did not explicitly cite U.S. sanctions, it attributed the decision to Cuba's "geopolitical, social, legal and economic context." Many of these hotels were already shuttered due to energy challenges and declining demand, limiting the financial impact on Meliá.
Broader Economic Impact
Trump's administration has intensified pressure on Havana since the start of 2026, cutting off Venezuelan oil supplies and threatening tariffs on countries sending fuel to Cuba. Several major airlines suspended service after being barred from refueling on the island. Canada and the United Kingdom have warned citizens against unnecessary travel.
Tourism, once a pillar of Cuba's economy, has collapsed. International arrivals hit a two-decade low in 2025 and are performing worse in 2026. From January to April, the island received just 328,600 visitors, a 56% drop from the same period last year, according to Cuba's statistics agency.
Other Companies Exit
On Monday, Royalton Hotels & Resorts Ltd. announced it was shutting its Cuban subsidiary, and Iberostar Group also ceased operating a dozen hotels in Cuba, according to multiple reports.
Payment Alternatives
The foreign financial institution processing Visa and Mastercard transactions for Cuba terminated its relationship with Financiera Cimex SA, Gaesa's banking arm, on Tuesday. Cash, domestic prepaid cards, Mir cards, and UnionPay cards will remain available for foreign-currency transactions, the central bank added.
The Trump administration had signaled that foreign companies had until Friday to unwind operations with Gaesa or face scrutiny by the U.S. Treasury Department's Office of Foreign Assets Control.
