Russia delays Cuba's debt repayments amid growing relations

Russia delays Cuba’s debt repayments amid growing relations. 

MOSCOW: The Russian government has agreed to postpone payments due to Cuba until 2027. Russia is set to delay certain debts owed to Cuba by the communist regime of Cuba up to 2027. 

The lower chamber of the parliament announced on Tuesday, a day following both countries’ announcement, that they would strengthen their ties in the escalating Ukraine crisis.

The loans, which totaled $2.3 billion, provided for Cuba through Russia between 2006 and 2019 allowed Cuba to finance the development of power generation facilities, transportation infrastructure, and metals, according to a statement issued by the lower house or Duma.

The day before, Russian lawmakers ratified an agreement signed initially with Cuban partners at Havana in 2021. The agreement modified the loan conditions according to the statement.

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Cuba recently expressed its support of Russia in its battle with Western powers regarding Ukraine after a visit by Russian Vice-Prime Secretary Yuri Borisov and accused of its long-time adversaries, of the United States and its allies of pursuing Moscow by waging a “propaganda war” and sanctions.

Russia’s decision to ease the loan’s terms is coming amid Cuba facing a dreadful economic and social crisis that has caused extreme shortages of medicine and food. 

The move follows protests in 2014 thought to be the biggest since Fidel Castro’s revolutionary in 1959.

Since the time of the revolution in the late 19th century, both nations have enjoyed many years of military and economic cooperation; however, the ties have waned in the past few years.

Russia has continued to provide humanitarian aid and loans to islands.

In the past decade, Cuba has also restructured its debt in the last decade with China, Germany, and Mexico in addition to Japanese commercial lenders.

The month of October was when Cuba came to a settlement with the Paris Club of creditor nations to delay the payment of its annual debt due in November to later in the year.

Duma Chairman Vyacheslav Volodin is scheduled to travel to Cuba and Nicaragua in February. 23 and 24.