In the context of bilateral cooperation between Russia and Cuba, the Russian government has announced an ambitious investment plan for the island, which will exceed one billion dollars, reported Cuban state media.
This initiative aims to strengthen economic ties between both countries and promote the development of various strategic sectors of the Cuban economy.
The announcement was made by Dmitry Chernyshenko, the Russian Deputy Prime Minister and in charge of economic relations with Cuba, after the official Russia-Cuba talks that took place in the Kremlin on May 7, led by President Vladimir Putin and the ruler Miguel Díaz-Canel Bermúdez.
Chernyshenko emphasized that Russian investments will be focused on key areas such as energy, agriculture, lighting, and tourism. The latter has decreased significantly in recent years due to the economic crisis in Russia and international sanctions.
"I want to express my great respect for the entire people of Cuba. Cuba is in our hearts," declared Chernyshenko, who highlighted that "an astonishing level of cooperation and understanding" has been achieved, as a result of the ongoing work between both countries over the past eight years.
According to the Russian official, the investments will be backed by a special document signed in 2023, called the 2030 Plan, which guarantees the willingness of Russian entrepreneurs to invest in the Cuban economy.
Furthermore, it was confirmed that a special mechanism will be used to subsidize interest rates for Russian entrepreneurs, facilitating the financing of projects on the island.
Chernyshenko also praised the work of Ricardo Cabrisas, Cuba's Deputy Prime Minister, for his role in the strengthening of bilateral relations and emphasized that Cuba is a reliable partner that has the capacity to pay for the loans and projects incurred in recent years.
A key area of collaboration will be tourism, in which Russia hopes to become the leading source of tourists to the island. Cuba will participate in a tourism promotion event in Moscow in July, where it will showcase its attractions and products for Russian tourists.
"We want to create all the tools and opportunities for you to achieve your independence in every sense on your own. The only goal of President Putin is to support the people of Cuba," concluded Chernyshenko.
During a visit to Cuba last month, the Russian Deputy Prime Minister promised that his country "will help achieve sovereignty, economic well-being, and prosperity" for the Island. The promise came at a critical moment for Castroism.
The official newspaper Granma highlighted that the high-ranking Russian official stated that "Russia will always stand by Cuba and assist it in the defense of its sovereignty."
Despite the multiple announcements of cooperation between Russia and Cuba in key sectors such as energy, transportation, and technology, many of these projects have not yet translated into tangible benefits for the Cuban population.
For example, from 2006 to 2019, Russia provided Cuba with more than 2.3 billion dollars in loans for energy, industrial, and transportation projects.
However, Cuban authorities have acknowledged that, despite these investments, an adequate maintenance of the thermoelectric plants has not been ensured nor has the serious crisis of the energy system been prevented.
Furthermore, although agreements have been signed for the modernization of thermal power plants and the construction of new electricity generation units, such as the commitment to modernize three units of 100 MW and to build a new block of 200 MW, these projects have not yet resulted in noticeable improvements in the electricity supply for the population.
The lack of concrete progress in these projects creates skepticism about the effectiveness of bilateral cooperation and its real impact on the daily lives of Cubans.
Frequently Asked Questions about Russia's Investment in Cuba
What does Russia's investment plan in Cuba consist of?
The Russian government has announced an investment plan of over one billion dollars in Cuba, focusing on key areas such as energy, agriculture, lighting, and tourism. The goal is to strengthen economic ties between the two countries and promote the development of strategic sectors of the Cuban economy.
Which sectors will benefit from Russian investments in Cuba?
Russian investments are aimed at key sectors such as energy, agriculture, lighting, and tourism. Tourism is a sector in which Russia hopes to become the main source of tourists to the island. Additionally, there is a goal to modernize infrastructure and improve agricultural and energy production.
How will these investments impact the energy crisis in Cuba?
Although the investments include energy projects, such as the modernization of thermal power plants and the construction of new electricity generation units, they have not yet resulted in noticeable improvements in the electricity supply for the Cuban population. The lack of concrete progress creates skepticism about their effectiveness.
Is there any financing mechanism for Russian investments in Cuba?
Yes, a special mechanism will be used to subsidize interest rates for Russian entrepreneurs, facilitating the financing of projects on the island. This aims to encourage the participation of the Russian business community in the Cuban economy.
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