In Soviet times, Russia has actively helped Cuba and in financial and political terms. Including Cuba received Russian oil and oil products. After the collapse of the USSR the situation changed and today the Island of Freedom “black gold” comes mainly from “revolutionary Venezuela, which because of falling energy prices on the world market now and she is on the brink of financial disaster. And the Cubans again asked Russia to lend a helping hand.
And, as in Soviet times, it again comes to Russian oil and petroleum products to Cuba today practically not available. Moreover, the Cuban government alludes to the fact that the Russian leadership should “enter into the situation and provide energy with a big discount — to “favorable funding conditions”, as the main energy supplier to the island – Venezuela – no longer able to provide supplies, as she barely survives to help Cuba were not. And Cuba, meanwhile, has faced acute gasoline crisis.
Should Russia to meet a long-standing ally who is likely to not be solvent, and that it is possible to ask in return.
While Russia is silent, although the Russian financial authorities had to examine this issue before 31 August. However, the decision still will eventually take political power.
In the framework of the Alliance Petrocaribe (Petrocaribe) from 2005 Venezuela supplies oil and oil products to Cuba (and other countries of Central America and the Caribbean). Program terms and conditions assume that buyers of Venezuelan oil to pay for it, only 48% of “real” money, and the remainder extinguished for 25 years with an annual rate of 1%. Cuba partially pay Venezuela in goods and services. For example, in exchange for the “black gold” gives Venezuela the opportunity to use their medical system, which is considered one of the best in the world.
More recently, the Venezuelan state company PDVSA, which provides oil to Cuba, assured that plans to cut supplies to the Island of Freedom is not, although already then it was reported about the problems with the raw material at the refinery of Cienfuegos.
Looks like Cuba really loses Venezuelan oil, although both economies — Cuba and Venezuela — rather closed, so still not very clear, Venezuela has stopped completely supply or simply their considerably reduced.
Before the Cuban refineries Havana, by the way, inherited from the Soviet Union, processed Venezuelan oil and oil products were sent including for export. As a result, Cuba did the currency. Thus, marketing of petroleum products, as well as the work of Cuban doctors were the main sources of foreign exchange earnings of the country. Remittances to relatives, who left earlier from the country, and tourism are the other two channels goes to Cuba currency, but these sources of revenue considerably less.
Cuba never paid for the oil Venezuela real market value, and today Cuba is not ready to buy the “black gold” at the market price. Therefore, Russia is not to be expected that the Castro government will pay the real price for oil. So what’s the point then go to Havana for a meeting?
“I think that no response to the initiative of Cuba, we will not leave. We contribute to the resolution of the energy deficit,” – said the Deputy Director General of the national energy security Fund Alexander Pasechnik. But in what form is this assistance provided — the question is far from the realm of rhetoric.
This assistance may be temporary — to resolve the energy crisis in Cuba.
Then Russia is likely to provide oil in the form of humanitarian aid. But, it seems that the problems in Venezuela will not end quickly, as the prices for oil soon will not grow. And Havana tells about stable supplies. Then Russia will have to come up with all sorts of supply chain.
“If you organize the supply of oil to Cuba on an industrial scale at a reduced price, then it can be done only within the framework of the swap supply in partnership with one of our partners, whose location in relation to Cuba is more convenient,” – said beekeeper.
To supply oil directly from Russia is very expensive, and there is someone to sell for market price. It turns out that if to supply oil to Cuba below market value, “we, in fact, substituted a different direction,” specifies the Director of the energy development Fund Sergey Pikin. To lose foreign exchange earnings in the current difficult financial conditions and Russia problematic.
Loss will purchase for Cuba oil somewhere closer — for example, in the United States, with which Havana relations are somewhat warmer.
“Obviously, this is pure financial aid to Cuba. Therefore, the decision is political. The company that will do it, and this is likely to be Rosneft and Zarubezhneft that are working in Cuba will have in response to some preferences,” – said pikine.
However, in the Cuban energy sector of the Russian company and so I feel pretty comfortable, so most likely, Russia will want to get some other preferences.
So, “Rosneft” is exploring the opportunity to become a participant in the project of exploration of oil fields in the Cuban shelf of Cuba, where, as expected, occurs not less than 630 million tons of oil reserves of about 280 billion cubic meters of gas and 120 million tons of gas condensate. In Cuba there is also a “inter RAO”. The company operates in the framework of the contract for the construction of four power units of 200 MW each on two Cuban thermal power plant. Work should be completed in the period 2022-2024 years. His interest in hydropower Cuba said earlier, another Russian company — “RusHydro”.
There are other projects in which Cuba is already engaged to a Russian company. Plus Russia is interested in building naval and medical cooperation with that country. For example, Russia may resume the work of radio-electronic reconnaissance center, located in the suburbs of Havana, Lourdes, and Russian ships can refuel at Cuban ports. Also the cube itself is able to offer Russia some joint economic projects.
Despite the fact that the United States, Cuba has already established some diplomatic relations, but still, Castro appealed for help to Putin, and not Obama — because Cuba still consider Russia as a strategic partner with whom we have long established a good relationship. And America without imposing political conditions for the Cuban authorities won’t help, experts say.
However, the Kremlin said that he had not seen reports about the alleged treatment of Cuban leader Raul Castro to the President of Russia Vladimir Putin with a request to consider the possibility of supply of oil and petroleum products to the Island of Freedom. This, in particular, said press Secretary of the President Dmitry Peskov.
“I haven’t seen such reports,” — said Peskov told reporters on Wednesday.
