Russia injects $1 billion into Cuba's future by 2030
The President of Cuba, Miguel Díaz-Canel, announced that Russia will invest $1 billion 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.
Cuban President Miguel Díaz-Canel's visit to Moscow concluded with a promising agreement regarding investment in the Cuban economy. After talks with Russian President Vladimir Putin, it was announced that Russia will invest up to $1 billion in Cuba by 2030.
The investments are set to include 12 projects in six key sectors, including energy and technology industries, as well as tourism. The report states that plans include opening new hotels and launching taxi services using Russian "Moskvitch" cars.
Continuation of cooperation
Russia, viewing Cuba as a trusted partner, also plans to subsidize loan interest rates for companies wishing to invest on the island. This agreement continues previous cooperation, though past Russian investments in Cuba, like the construction of a power plant in 2015, have faced challenges. Cuba had difficulties repaying debts, leading Russia to extend the repayment deadlines.
Simultaneously, moscowtimes.ru notes that Russia's recent investments and debt forgiveness toward Cuba have political implications. Cuba remains one of Russia's main allies in the Americas, influencing the economic relations between the two countries. From Russia's perspective, investments in Cuba may also strengthen political and strategic ties with a regime that has long relied on Moscow's support.
While these investments may benefit Cuba, the question remains whether they will be enough to mend the Cuban economy, which continues to struggle with financial and social challenges, exacerbated by embargoes and limited resources.
