Russia Unveils Over $1 Billion Investment Initiative in Cuba

In a move to bolster bilateral cooperation, the Russian government has unveiled a substantial investment plan for Cuba, surpassing the $1 billion mark, as reported by Cuban state-run media. This initiative is aimed at enhancing the economic ties between Russia and Cuba and fostering progress in several strategic sectors of the Cuban economy.

The announcement was made by Dmitry Chernyshenko, Russia's Deputy Prime Minister responsible for economic relations with Cuba, following official talks held at the Kremlin on May 7, led by President Vladimir Putin and Cuban leader Miguel Díaz-Canel Bermúdez. Chernyshenko emphasized that Russian investments will target crucial areas such as energy, agriculture, lighting, and tourism. The tourism sector, in particular, has suffered a significant decline in recent years due to Russia's economic crisis and international sanctions.

"I want to express my deep respect for the Cuban people. Cuba is in our hearts," stated Chernyshenko, highlighting the "remarkable level of cooperation and understanding" achieved through continuous collaboration between the two nations over the past eight years. According to the Russian official, these investments will be supported by a special document signed in 2023, known as Plan 2030, which assures the commitment of Russian entrepreneurs to invest in Cuba's economy.

Additionally, a special mechanism will be employed to subsidize interest rates for Russian businesses, facilitating the funding of projects on the island. Chernyshenko also praised Ricardo Cabrisas, Cuba's Deputy Prime Minister, for his role in strengthening bilateral relations and stressed that Cuba is a reliable partner capable of honoring its credit and project commitments in recent years.

Tourism will be a key area of collaboration, with Russia aiming to become the leading source of tourists to the island. Cuba is set to participate in a tourism promotion event in Moscow this July, where it will showcase its attractions and products to Russian tourists. "We want to create all the tools and opportunities for you to achieve independence in every sense. President Putin's sole objective is to support the Cuban people," concluded Chernyshenko.

During a visit to Cuba last month, the Russian Deputy Prime Minister pledged that his country "will help achieve sovereignty, economic well-being, and prosperity" for the island. This promise comes at a critical time for the Cuban regime. The official newspaper Granma noted that the high-ranking Russian official stated, "Russia will always stand by Cuba and assist in defending its sovereignty."

Despite numerous announcements of cooperation between Russia and Cuba in key sectors such as energy, transportation, and technology, many projects have yet to yield tangible benefits for the Cuban population. For instance, from 2006 to 2019, Russia provided Cuba with over $2.3 billion in loans for energy, industrial, and transportation projects. However, Cuban authorities have acknowledged that, despite these investments, adequate maintenance of thermoelectric plants has not been ensured, nor has the severe crisis in the energy system been averted.

Moreover, although agreements have been signed for the modernization of thermal power plants and the construction of new power generation units, such as the promise to modernize three 100 MW units and build a new 200 MW block, these projects have yet to result in noticeable improvements in the electricity supply for the population. The lack of concrete progress in these projects generates skepticism about the effectiveness of bilateral cooperation and its real impact on the daily lives of Cubans.