Russia to invest $1 billion in Cuba by 2030 amidst crises
The President of Cuba, Miguel Díaz-Canel, has announced that Russia will invest $1 billion in the Cuban economy by 2030. The agreement encompasses projects in six sectors, including energy, tourism, and industry, aiming to aid the island’s recovery after years of crisis, reports moscowtimes.ru.
The Cuban President’s visit to Moscow concluded with a promising investment agreement. Following discussions with the Russian President, Vladimir Putin, it was revealed that Russia will invest up to $1 billion in Cuba by 2030.
According to the report, the proposed investments will involve 12 projects in six crucial sectors, including energy, technology, and tourism. Plans are also to open new hotels and introduce taxi services featuring Russian "Moskvitch" cars.
Continuation of cooperation
Viewing Cuba as a trusted partner, Russia also intends to subsidise loan interest rates for companies wishing to invest in the island. This agreement represents a continuation of previous cooperation. However, past Russian investments in Cuba, such as the construction of a power plant in 2015, have faced challenges – Cuba had difficulty repaying debts, leading Russia to extend the repayment deadlines.
Simultaneously, moscowtimes.ru notes that Russia's recent investments and debt forgiveness towards Cuba carry political undertones. Cuba remains one of Russia's chief allies in the Americas, which translates into economic relations between the two countries. From Russia's perspective, investments in Cuba may also serve to strengthen political and strategic ties with a regime that has long been highly reliant on support from Moscow.
While these investments may benefit Cuba, the question persists as to whether they will be sufficient to revitalise the Cuban economy, which continues to grapple with financial and social challenges, worsened by embargoes and limited resources.
