Novikombank, part of the Russian state corporation Rostec, announced on Thursday the opening of its first branch in Cuba. This milestone makes Novikombank the inaugural Russian bank to establish a presence on the island, aiming to ensure the stability of payments between both nations, support economic and trade relations, and foster investments.
Official Inauguration Ceremony
The official presentation of Novikombank's branch in Cuba took place during a ceremony at the Meliá Cohiba Hotel. Ricardo Cabrisas, Cuba's Deputy Prime Minister, emphasized that effective participation of the banking system is vital for the advancement of trade and investments, highlighting the regime's steadfast alliance with Russia.
The new branch, located in Havana, will focus on financially supporting Russian companies operating in Cuba, including sectors such as aircraft, engine, and automobile manufacturing, oil extraction, and the radio-electronics industry. Novikombank anticipates that this opening will enhance interaction with both existing and potential Cuban banks and clients.
Yelena Geórguieva, the bank's president, stated that the branch opening in Cuba "is not only a new chapter for the bank but also a significant step in Russian-Cuban relations." She emphasized Novikombank's experience in financing high-tech companies, which will be crucial for operations in Cuba.
Strengthening Bilateral Financial Cooperation
For years, Novikombank has facilitated cooperation between Russian and Cuban companies in sectors such as tourism, transportation, and energy. Alongside three other Cuban entities, it formalizes payment operations in bilateral commercial transactions.
In December, Russia had already activated access to its Mir bank cards, an alternative to Visa and Mastercard, at payment terminals in Cuba. Previously, Cuba had authorized the use of these cards at the country's ATMs, further strengthening political and commercial ties between the two nations.
Since May 2023, it has been reported that three Russian banks are interested in opening branches in Cuba. According to Boris Titov, head of the Cuban-Russian Business Committee, these financial entities have already submitted their applications to the Central Bank of Cuba.
Impact of Novikombank’s Branch in Cuba
The establishment of Novikombank's branch in Cuba raises several important questions about the future of Russian-Cuban financial relations. Here are some key inquiries and their answers:
What is the significance of Novikombank opening a branch in Cuba?
The opening of Novikombank's branch in Cuba signifies a new level of financial cooperation between Russia and Cuba, aiming to stabilize payments, support economic relations, and foster investments.
Which sectors will Novikombank's branch in Cuba support?
The branch will support Russian companies in sectors such as aircraft, engine, and automobile manufacturing, oil extraction, and the radio-electronics industry.
How does the activation of Mir bank cards in Cuba affect Russian-Cuban relations?
The activation of Mir bank cards in Cuba strengthens financial and commercial ties between the two countries, offering an alternative to international card systems like Visa and Mastercard.