Opening of a Russian Store in Havana in 2024 Is Confirmed
Without clarifying what currency will be needed: Cuban Pesos or Foreign Currency
Although at first it is planned to be dedicated to food, clothing, appliances and cars have been announced for later.
HAVANA TIMES – The official press echoed this Sunday the announcement of the opening of a Russian products store in Havana, a project between the RusMarket brand and the state-owned Cimex that had already been advanced eight months ago but now has a tentative date: March 2024.
At that time, Evguéni Meytes, representative of the company, was hired during his visit to Havana on the occasion of the International Fair of Havana (FIHAV), which concluded this Saturday.
“We have very fraternal relations with the Island. The leadership of our country said last year that we had to strengthen mutual ties, and one of the expressions of that consolidation is the opening of this store. We are happy to show here high-quality products for the Cuban market,” he said at the time he announced to Sputnik the opening of the store, which will sell canned meats and vegetables, chocolates, and champagne from the firm Abrau.
To know this information, as well as the probable location of the store, which could be in Yumurí (corner Belascoaín and Carlos III) or in Cuatro Caminos, according to Meytes, you have to read the Moscow press. Cubadebate barely picks up the words of the general director of RusMarket, Alexander Belchikov.
“The RusMarket project is intended for the long term and includes the opening of the first Russian product store on the Island, since most of the Cuban population remembers these goods, so we will create a joint venture that will begin to operate before the end of 2023,” he said.
The businessman spoke of a huge range of products that go beyond food, although that would be a second phase that would include spare parts for cars, machinery, construction equipment and materials, appliances, textiles and clothing.
“We want to introduce Russian products into the Cuban market and, in the same way, serve as a gateway to Russia for Cuban products. Our company aims to become a link between the two countries,” said Belchikov, who spoke of the intense relations between the Island and the Eurasian giant, both at the governmental and business level.
But the news lacks the most important thing, in the opinion of the readers, who have rushed to ask for information about the currency in which the products will be sold. “The news is incomplete, as usual. He left out the part about which currency ordinary Cubans will use to be able to purchase these necessary products. In my opinion, I don’t think it’s in CUP (Cuban pesos) but in dollars,” admitted a reader of Cubadebate.
The feeling that there is no other option permeates the dozens of comments, due to past experiences and the reasoning that most of them make about the uselessness of the national currency. “And what are the Russians going to do with the CUP collected? Go to Moscow to buy more merchandise with that money? I don’t think so,” one points out.
“It will have to be in MLC (freely convertible currency), since it is the only way for the supplier to collect their expenses and profits,” another reasoned. “But of course, it’s elementary. Why would RusMarket want to sell in CUP? What are they going to do with the CUP, to continue supplying that market?” asked another.
The rejection of that evidence is present in many other messages that welcome the initiative as long as it’s not in foreign currency, since, as another reader points out: “We are all in need, and we must think about protecting the entire population; otherwise we will not solve anything.” Doubts about whether the store will be a wholesaler or retailer and the indignation that every new opportunity is located in the capital also abound in the comments.
Russians, meanwhile, are focused on their own business. The event was also attended by Olga Sidorik, export manager of the Ladoga alcoholic beverage group, who highlighted Cuba’s potential as a recipient of those products, thinking about tourism.
“We have many years of friendship, and we believe that we can do good business here. We have not yet established anything, but there are several negotiations planned for this fair. Let’s wait for our return to achieve the realization of some, because there is a lot of potential for the sale of our products,” she told Sputnik.
Between January and October, about 146,305 Russian tourists traveled to Cuba, increasing by 3.5 times the number of travelers in the same period of 2022 according to the Association of Tour Operators of Cuba, which aspires to recover figures prior to the pandemic, such as the 178,000 received in 2019. However, already that year a shift of travelers to other destinations such as the Dominican Republic began to be noticed, with a similar offers but more benefits than the – increasingly – impoverished Island.
Translated by Regina Anavy for Translating Cuba
So what about Diplomarket?
Owned by an American (dual national?) and resembling a US warehouse store.
Is it still open at
carretera Monumental km 8 1/2 Berroa
?
Andy, a well written and explained expose of the past and current horrendous, stifling, bureaucracy that prevents well intentioned foreign entrepreneurs from helping Cuba’s economy move forth into the 21st century.
No, the Cuban totalitarian government has absolutely no interest in welcoming free market initiatives and enterprises into its island territory unless those creative well intentioned businesses bend over backwards to the delusional will of a few archaic, ideological, total control cadres who in the end bring destitute and despair to the Cuban majority.
Your salient summary advice is extremely note worthy.
My brother and I have run a hospitality business in England for many years, and are of Irish and Indian heritage. We looked at the possibility of opening an Irish bar in Havana some 25 years ago following two previous visits to Cuba, and meetings with Cuban officials on an economic mission to the European Union. 6 weeks later we flew to Havana and had pre-arranged meetings with inward investment officials of the Ministry of Economic Affairs. We had the first meeting in Havana Central (a Ministry Office in a pre-Revolution building that had been a branch of a Canadian Bank), and the second in Myanmar. The first item on the agenda was a lecture on the history of the Cuban revolution and the economic benefits for the Cuban people. The second lecture was on the history of Cuban music, both items we are very familiar with already! When we finally got down to the nitty-gritty the down sides were obvious. They would decide how many staff we would need, and we would pay them in US dollars (to the Cuban Government directly). The Cuban workers would be paid in Pesos (less than a quarter of our payment to the Cuban Government!). Finally, we would not be in a position to select who was a ‘focused and good worker’, ie we had NO input into the level of staffing, or any ability to replace poor workers! All staff would be supplied by the Cuban State run hospitality school, and the workers would have an appointed ‘Jefe’ amongst them. Finally, despite all the contacts with Irish Distillers (Pernod Ricard) for Irish Whisky, and Guinness in the UK and Jamaica, they would control the importation of foreign beverages. Furthermore, all our background work was ignored as they would set the rent for the property, and they would undertake the refurbishment at our expense, with NO ability to set deadlines and budgets! These are impossible working conditions to operate in. And I have not even mentioned the Governments control of ‘profit share’ etc.. We pulled out of any interest.
The only thing they seemed to be excited by was our choice for the name of the bar, ‘Cervecería Bernardo O’Higgings’, the Liberator of Chile, who they saw as a positive symbol. (My mothers family also came from the same area of Ireland as the O’Higgings family!)
In short, Do Not Bother to deal with the Cuban Government in terms of inward investment as one will only get their fingers burnt! A salient lesson indeed!
Attention Stephen I know of 3 business that lost money in Cuba because of the gov policy of Cuba 6 different nonprofit groups were misled by the government of Cuba. Without a major change in Cuba politics the economy will fail. Most companies and tourists are not happy with current policies that have caused the current situation and shortages. I agree with you about the U S influence but it is the current situation in Cuba that will stop trade not the U S..gov.
Stephen Webster writes: “But the government in cuba is not interested” Stephen for your information neither is the government of Canada interested in entering into a bilateral trade agreement with a totalitarian state. Stephen what do you think the American administration would say and do if Canada even considered such trade deal. Such a scenario will never occur as long as Cuba is governed by a few undemocratic, unelected, communist cadres.
Canada’s most important trading partner is the USA. We export 80% of our domestic products to our southern friends. Canada does not agree with the American blockade/embargo call it what you want but they are adamant that allies respect their decisions. And the Canadian government under the leftist Liberals have done exactly that.
Any Canadian business person doing business in Cuba either regrets their decision and/or is looking to leave as quickly as possible without losing their initial investment. The brutal bureaucracy impedes even the most ardent astute business person. And if the business person’s political ideology is different from communist planned economic enterprises hardship will plague the entrepreneur.
The totalitarian leaders in Cuba abhor free market capitalism that drives the Canadian and American economies. The Cubans put their faith in Ideological brothers namely Russia, China, Vietnam. These are the countries that do well in Cuba because they are politically and ideologically aligned.
Stephen do you know of a successful Canadian business enterprise that has been economically successful in Cuba? Sherritt International the Canadian mining company that mines nickel in Cuba is the only Canadian business enterprise that has succeeded in Cuba. However the reason for that was the cozy relationship between Fidel Castro and the president of the mining company.
The Americans in retaliation to this blatant disrespect of their blockade barred all Sherritt executives from entering the USA. Canadian companies have taken note and have governed themselves accordingly. No Canadian company or Canadian entrepreneur will risk a substantial investment in Cuba.
The only Canada you will see in Cuba today are Canadian tourists. And that is a good thing for Canadians and for Cubans.
India and 2 Co ops I. Ont would be also willing to open a supply warehouse for smal retail shops along the lines of a mini Costco but the current government is not interested in allowing a free trade zone and giving up any control of the retail or the wholesale side. Unless major changes are made allowing people a chance to make a fair amount in the form of wages and a share of the profits. This Russian store will just be another disaster
Many items are 2 or 3 times the price in Russian stores in Russia as the price for similar products in India or mexico. Most of the lower cost medical supplies come out of India or China. India has the large amount of rice production
Canada has a huge amount of farm equipment parts and clothing made in India that could be move to cuba and 3 greenhouse owners that would be willing to put up about 500 acres of greenhouse in cuba that would produce no spray fruits and vegetables that could sold in cuba if not perfect and 13 plane loads a day shipped to Hamilton ont from Sept to April each yr like we get from mexico at the rate of 50 truck loads a day. But the government in cuba is not interested
Does it really matter what currency will be used in this new Russian retail store opened in Cuba. The majority of Cubans subsisting on meagre wages do not possess the wherewithal to enter. The establishment obviously is meant for those with the sufficient appropriate currency like Russian tourists and those Cubans fortunate enough to be receiving foreign remittances.
What exactly is being sold here that is out of reach for the majority of hard working Cuban citizens? The Russian store “ . . . will sell canned meats and vegetables, chocolates, and champagne from the firm Abrau.” Image that: champagne! What an insult to the majority of Cubans who after a long hard day of strenuous work cannot even purchase a cold beer. A cold beer is sold in American dollars.
Let’s back up a few decades. The Cuban Revolution in 1959 spirited by socialism and communist ideology promised equality for all Cubans. With the help of Russia in the 1960s Russian food, merchandise, was all subsidized on the island so that with little money at the time all Cubans lived a decent life. The Cubans gave up their freedoms for the exchange of subsidized sustenance.
Fast forward to today and the Faustian bargain is broken. Though the communist ideology is still rampant among the island’s leaders, and some will argue it has gotten progressively worse and warped, the majority of Cubans must be wondering what happened to all those subsidized Russian store products shipped directly from Russia they previously purchased with Cuban currency – the Cuban peso? Why can’t that be repeated in 2023?
Well, the answer is obvious. The Cuban state operates not on socialist or communist ideology anymore where equality for the masses is suppose to be the cardinal rule but on a bastardized form of capitalism that makes the majority of Cubans suffer, and the island’s rulers both Cubans and Russians rich. The days of subsidized food from Russia for Cubans is over.
It seems Cuba is slowly reverting backwards to what it was pre -1959 where a group of wealthy foreigners – not American this time – exploit the population for their own selfish ideology. Russian tourists will feel right at home buying products in Cuba that are sold in every store in Russia: how convenient. Meanwhile the local residents can only gawk and watch as their homeland is sold out.
If the plan is to duplicate Russian so called capitalism in Cuba whereby the few with means profit and the majority do without, then the majority of current Cuban citizens certainly have a great deal to worry about for the future of their beloved homeland.