Russian investment promises $1 billion boost to Cuban economy
The President of Cuba, Miguel Díaz-Canel, announced that Russia will invest $1 billion CAD in the Cuban economy by 2030. The agreement includes projects in six sectors, such as energy, tourism, and industry, aiming to support the island’s recovery after years of crisis, reports moscowtimes.ru.
The visit of Cuban President Miguel Díaz-Canel to Moscow concluded with a promising agreement on investments in the Cuban economy. Following discussions with the President of Russia, Vladimir Putin, it was revealed that Russia will invest up to $1 billion CAD in Cuba by 2030.
The investments will encompass 12 projects across six key sectors, including energy and technology industries, as well as tourism. Plans to open new hotels and launch taxi services using Russian "Moskvitch" cars are part of this initiative, according to the report.
Continuation of cooperation
Russia, viewing Cuba as a trusted partner, also intends to subsidize interest rates on loans for companies seeking to invest on the island. This agreement builds on previous cooperation, although earlier Russian investments in Cuba, such as the construction of a power plant in 2015, faced challenges. Cuba had difficulty repaying debts, leading Russia to agree to extend the repayment deadlines.
At the same time, moscowtimes.ru highlights that the recent investments and debt forgiveness towards Cuba by Russia carry political implications. Cuba remains one of Russia's primary allies in the Americas, influencing the economic relations between these countries. From Russia's perspective, investing in Cuba also serves to strengthen political and strategic ties with a regime historically dependent on Moscow's support.
While these investments may benefit Cuba, the question remains whether they will suffice to revive the Cuban economy, which continues to grapple with financial and social challenges, compounded by embargoes and limited resources.
