The Russian government has expressed confidence that Cuba will overcome the severe economic crisis it currently faces. To support this, they have announced plans to grant new lines of credit, according to the EFE news agency.
"Russia will take additional measures to support Havana, particularly through the provision of new credit lines," stated Sergei Shoigu, Secretary of the Russian Security Council, during a meeting in St. Petersburg with Cuban Interior Minister Lázaro Alberto Álvarez.
The former Russian Defense Minister also highlighted the willingness to "increase cooperation within the framework of security councils, special services, and police departments," with special attention to "commercial, economic, and investment cooperation."
Although details of this new measure, aimed at restructuring Cuba's debt and providing more favorable payment conditions, are yet to be disclosed, the Russian side has indicated that they aim to assist amid the commercial and economic restrictions the country faces.
Russian-Cuban Financial Agreements
In March this year, Russian President Vladimir Putin approved modifications to the credit agreements between Russia and Cuba. The Russian government's legal information portal published that these protocols, endorsed by the Russian president, impact state credit agreements granted to Cuba between 2009 and 2019 for the purchase of hydrocarbons.
The facilities offered to Havana include the option to settle the debt in rubles, the postponement of the initial payment plan scheduled for 2023-2027 to the period 2028-2040, and adjustments in the calculation of late payment fees.
On multiple occasions, the Russian side has emphasized Cuba's strategic role in Latin America. This was mentioned by Foreign Minister Sergey Lavrov during his visit to Havana last February and reiterated by Shoigu, who noted that the relations between the two countries have "stood the test of time."
In an unexpected trip last May, Cuban leader Miguel Díaz-Canel visited Russia in a trip that, according to the Cuban foreign ministry, would "address bilateral agenda priorities."
After assessing his visit, the Cuban president noted that in meetings with Russian authorities, "we discussed how we could advance more quickly and what new things can be done to help alleviate the energy and food situation in our country during this emergency."
However, Cubans continue to see no tangible results from the leader's travels and the supposed agreements he secures, while life on the island becomes increasingly difficult.
Understanding Russia's Financial Support to Cuba
This section provides answers to some frequently asked questions regarding Russia's financial aid to Cuba.
Why is Russia providing new credit lines to Cuba?
Russia aims to help Cuba overcome its severe economic crisis by providing financial support and restructuring its debt under more favorable conditions.
What changes have been made to the existing credit agreements?
The changes include an option to settle the debt in rubles, postponing the initial payment plan to 2028-2040, and adjustments to late payment fees.
How does this financial support impact the relationship between Russia and Cuba?
This financial support underscores the strategic partnership between Russia and Cuba, reinforcing their long-standing relationship.