Russia Cuts Cuba’s Debt to US $3.5 Billion

Putin Arrives in Havana on July 11th

Raul Castro and Vladimir Putin when the Cuban president visited Russia in 2012.  Photo: cubadebate.cu
Raul Castro and Vladimir Putin when the Cuban president visited Russia in 2012. Photo: cubadebate.cu

HAVANA TIMES — The Russian Parliament approved today the cancellation of 90% of Cuba’s 35 billion dollar debt (26,000 million euros) from Soviet times, the same day the Kremlin announced a visit by President Vladimir Putin to the island on July 11.

Nonetheless, Cuba must repay the remaining US $3.5 billion over ten years, reported dpa news.

The Soviet Union was the main trading partner and strategic ally of Fidel Castro during the time of the Cold War. The collapse of the socialist bloc put the island on the brink of economic collapse in the early 1990s.

When in Havana, Putin plans to meet with both President Raul Castro, 83 and former leader Fidel Castro, 87.

The Russian leader will then continue on to Buenos Aires, where he will meet with the Argentine President Cristina Fernández.

Putin will also attend a summit in Brazil of the BRICS emerging economies group (Brazil, Russia, India, China and South Africa) on 15 and 16 July in Fortaleza and Brasilia.


34 thoughts on “Russia Cuts Cuba’s Debt to US $3.5 Billion

  • September 5, 2015 at 2:46 am
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    The problem with evading the sway of the U.S. is that the U.S. worker productivity is quite high. They offshore only because more production per dollar can be purchased overseas. The U.S. Is also the premium ultra consumer, paying $50 for sneakers that cost $2 to make in China.

    If the dollar falls in value, all the U.S. overseas production that supports those economies (China’s is affected already and falling fast, in an attempt to remain relevant) that production and the dollars it costs move back to the U.S. The cost of foreign goods rises in comparison to U.S. goods, so more money is spent in the U.S. instead of in overseas economies. Great for the U.S. Bad for the other economies. By 2020 the U.S. will no longer be dependent on foreign energy sources. I think the U.S. would cry crocodile tears all the way to the bank. And as their debt is in dollars, devalue the dollar, devalue the debt. And a devalued dollar makes U.S. goods attractive for foreign purchase. They’ll cost less in comparison to their foreign counterparts.

    So Brics can go to town, the U.S.’s horrid economic downturn has the dollar stronger against foreign currency. The Russian Ruble went from 28 to the dollar to 70 to the dollar. The euro came close to USD parity. And may go beyond that.

    All the while the U.S. Outrageously printed over 2,000,000,000,000 dollars and used it to buy back some long term bonds … And the value of the dollar rose. While the debt to GDP ration more than doubled. And the dollar rose in value.

    Use a toothpick to move a mountain.

  • September 5, 2015 at 2:27 am
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    Maybe it was actions like sending over 10000 Cuban troops to fight in Angola. No offense but a country refusing to trade with another is not an economic attack. I have bought Cuban cigars in Canada and Ukraine. So they don’t seem to have to many issues with exports around the world. And while they are wizards at keeping old US cars running, nothing but money stops them from buying Ladas (well common sense not to), or Fiats or BMWs … There economic failure is of their own making through a policy which doesn’t encourage innovation or production. There are exceptions in the sciences and in medical science Cuba has some nice research breakthroughs.

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