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Russia will sign a contract with Cuba to provide a credit of 60 million dollars intended for the purchase of fuels, according to an announcement made this Sunday by a source from the Cuban regime.
Julio Antonio Garmendía, the Havana ambassador to the Eurasian country, declared to the Russian news agency Sputnik that, following the signing of the corresponding agreement between the two governments, the contract that will allow its implementation will be signed in the coming days.
According to Garmendía, in addition to the loan for purchasing fuels, Russia will donate an additional two million dollars for the acquisition of essential parts for the recovery of the national electro-energy system (SEN), which is in a critical situation due to the significant deterioration of the country's outdated power plants.
Russian aid represents a new lifeline for the island's regime amid the sharp and prolonged energy crisis it is experiencing, characterized by widespread and frequent power outages, fuel shortages, and restrictions on public transportation.
In November 2024, just a few weeks after the collapse of the National Electric System that left Cuba without electricity for about four days, Moscow announced its willingness to supply 80,000 tons of diesel fuel to the island, valued at over 60 million dollars, as emergency support to alleviate the critical situation in the energy sector.
In March, Russian President Vladimir Putin approved the modification of credit agreements between the two countries to restructure Cuba's debt and provide it with more favorable payment terms.
The protocols approved by the Russian leader are related to the state credit agreements granted by Russia to Cuba between 2009 and 2019 for the acquisition of hydrocarbons.
According to official information from the Russian government, the debt accumulated by Cuba under these agreements amounts to $277.2 million.
The concessions granted to Havana at that time included the option to settle the debt in rubles, the postponement of the payment plan originally scheduled for 2023-2027 to the period of 2028-2040, and adjustments in the calculation of late payment rates.
Russia believes that providing assistance to Cuba to ensure its oil supply will strengthen Moscow's political positions in Latin America.
The decision made by Putin last March reflects the close bilateral relationship between the two allied countries and aims to alleviate the economic and energy challenges faced by the island's regime.
In 2022, Putin signed a law that would allow Cuba to postpone the payment of its debt, after having received loans since 2006 amounting to approximately $2.3 billion.
Frequently asked questions about energy cooperation between Russia and Cuba
How much is the credit that Russia will provide to Cuba for the purchase of fuel?
Russia will grant a loan of 60 million dollars to Cuba for the purchase of fuels. This loan aims to alleviate the energy crisis the island is facing due to the shortage of hydrocarbons and the deterioration of its electrical infrastructure.
What other types of assistance will Russia provide to Cuba besides credit for fuel?
In addition to the credit for fuel purchases, Russia will donate two million dollars to buy essential parts for Cuba's national electric power system. This aid aims to alleviate the issues caused by the deterioration of the country's power generation plants.
How has Cuba's debt to Russia been restructured?
Russia has allowed Cuba to postpone debt payments and make payments in rubles. The repayment schedule has been rescheduled from the period of 2023-2027 to 2028-2040, with adjustments to interest rates for late payments, which represents a significant relief for the Cuban economy.
Why does Russia continue to support Cuba amid its energy crisis?
Russia seeks to strengthen its presence in Latin America and maintain ties with Cuba, its historical ally. Economic and technical assistance to Cuba not only addresses the island's immediate needs but also has political and strategic implications for Russia in the region.
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