Cuba–Russia cooperation and agreements

Cuba, Russia sign promising oil agreement

Cuba and Russia signed an agreement Monday, Nov. 2, 2009, to allow Russian state oil company Zarubezhneft to explore for and produce oil in Cuba in their first post-Soviet oil pact.

"The contracts that were signed are tremendously important for Russia and Cuba, since they will guarantee cooperation over the next 25 years," said Nikolai Brunich, a Zarubezhneft official after inking the deal with the head of Cuba's state oil company Cubapetroleo (CUPET), Fidel Rivero.

Cuba currently receives most of its imported oil from Venezuela, in large part, in exchange for Cuban participation in Venezuela's universal health care system, in which thousands of Cuban doctors are employed and Cuban-manufactured medical supplies and equipment are widely used. Cuba consumes 145,000 barrels of oil daily, about 68,000 barrels per day are produced in Cuba. State-owned Cuban oil companies produce most of the 68,000 barrels of domestic oil. But at least seven foreign companies - from Spain, India, Norway, Malaysia, Vietnam, Venezuela and Brazil - are currently working in the main oil producing and exploration zone off the north coast of Cuba in the Gulf of Mexico. The company from Russia will soon become the eighth.

The US government, following a mean, imperialist policy of generating poverty within political foes, tries to sabotage Cuban oil production, largely by prohibiting non-US oil companies from using any foreign-manufactured equipment in Cuba if the equipment contains US-made components or foreign-made components based on US patents or licenses. Of course, US oil companies are directly subject to the blockade of Cuba.

Cuba, Russia Sign Oil Exploration Agreements
11-05-2009

In Havana on Wednesday, Cuban and Russian officials signed four international economic association contracts for hydrocarbons exploration and exploitation in discoveries that might be made north of the central and western part of the country.

These documents were signed by Nikolai Bunich, director of the oil company Zarubezeneft, and Fidel Rivero, director of the Cuban Petroleum Union, in the presence of Basic Industries Minister Yadira Garcia and Ivan S. Materov, vice minister for industry and trade of the Russian Federation.

The initial investigation work and subsequent drilling and exploration will be carried out in four blocks located in northern Sancti Spiritus, Ciego de Avila, Villa Clara, and Matanzas, and both sides agreed to begin as soon as possible, once the timetable has been defined. Sources from the Basic Industries Ministry commented that they include Petro Vietnam, Petrobras (from Brazil), and PDVSA (from Venezuela).

http://www.emii.com/Articles/2331581/Energy/Top-Stories/Cuba-Russia-Sign-Oil-Exploration-Agreements.aspx

Good time to do that, why are they selling their oil? Cuba was supposed to have connections with rich stability. They can't go under their banner for more supplies? Why was it not supposed to work with the weapons anyways? Well it's about time somebody got their oil. Should sell it to windfarms

Russia to assist in creation of major transport hub in Cuba - Putin

Russia, Cuba and possibly other countries will pool their efforts for creating a major transport hub in Cuba by upgrading the port of Mariel and building a modern international airport in San Antonio de los Banos, President Vladimir Putin said.In an exclusive interview to the Latin American news agency Prensa Latina ahead of his South American tour, during which he will visit Cuba, Argentina and Brazil, Putin said Russian decision to write off 90% of the Cuban debt on loans granted in the Soviet times was a "unprecedented step" which “testifies to the strategic nature of our bilateral relations".

The total debt exceeds 35 billion US dollars. A relevant Intergovernmental Agreement was signed in October 2013 and now it is in its final stage of ratification. In addition, the remaining 10%, or 3.5 billion US dollars, will be spent by Cuba itself on significant investment projects, which Russia is going to select and negotiate together with the Cuban side. These projects are aimed at social and economic development of the Republic, he said and expressed hope that these investments will prove fruitful, informs ITAR-TASS.

Read also: Cuba is one of Russia's leading partners in the region - Putin

Putin believes that Russian-Cuban trade and investment relations have a great potential. "In order to realize it effectively and on a regular basis we have established an Intergovernmental Commission. Its twelfth meeting is scheduled to be held in autumn 2014 in Havana," he said.

The two countries have also established close cooperation between their business organizations - the Russian-Cuban and Cuban-Russian Business Councils. "Our businesses traditionally take an active part in the annual Havana International Trade Fair: in 2013, 50 Russian companies presented their products," the president said.

"We believe there are real opportunities to bring our cooperation to a totally new level, including by implementing major joint projects," he said.

As an example, he mentioned Zarubezhneft which started drilling the first development well in the Boca de Jaruco oilfield in August 2013.

"Our short-term prospects include the development of new oilfields in the Cuban offshore area. To these ends, Zarubezhneft and Rosneft engage in active cooperation with Cupet, Cuba’s state oil company," Putin said, adding that INTER RAO was also planning to join the construction of power units for the Maximo Gomez and East Havana TPP. The supply of Russian electric power equipment to Cuba is well underway.

Putin noted that a substantial number of Russian companies - specializing, in particular, in the production of reinforced plastic goods, auto spare parts, tractor assembly and installation of heavy equipment for the railway industry - had shown interest in closer cooperation due to the development of the Mariel special economic zone in Cuba.

Other important projects include the construction of a major transport hub with Russia's and Cuba's involvement, as well as the possibility of attracting investment from third countries. It involves upgrading the port of Mariel and building a modern international airport with a cargo terminal in San Antonio de los Banos.

Putin stressed that Russia also attached "great importance to high technology cooperation. In particular, active work is underway to create GLONASS ground infrastructure on the island, to provide Cuba with products, services and technologies in remote sensing and satellite telecommunications".
Read more: http://voiceofrussia.com/news/2014_07_11/Russia-to-assist-in-creation-of-major-transport-hub-in-Cuba-Putin-3190/

Putin Writes Off $32 Billion of Cuba's Debts to Russia

Russian President Vladimir Putin is currently on a grand tour of Latin America. His first stop is in Havana, Cuba. Ahead of arriving in Cuba, Putin decided to bestow a gift upon the Cuban government. With one swift signature, he eliminated $32 billion of Cuba's debt, left over from the Soviet era.

Cuba isn't completely off the hook. They will be required to pay back just $3.2 billion over the next ten years, a 90 percent decrease from what they previously owed. The first payment is due in October, and will be made from the National Bank of Cuba to the Russian lender Vnesheconombank.

Cuba has been working to restructure its debt over the last few years. In 2011, Cuba was able to restructure a $6 billion debt with China. Other nations have also forgiven their debt. In 2012, Japan forgave $1.4 billion and more recently, Mexico forgave $478 million in debt.

While it may be nice to think Putin was simply showing a kind gesture to the Cuban government in forgiving this debt, it may be motivated by oil. Right now, the Cuban state oil company CUPET and Russia's Rosneft are in negotiations for a very lucrative deal. Russia and Cuba are close allies. Last year, trade between the two countries totaled about $200 million.

Cuba has oil reserves of between 4 billion and 20 billion barrels, though likely in the area of 9 billion barrels. With the oil price at $110 per barrel, this deal could bring around $900 billion. This is comparable to the deal Rosneft currently has with Exxon Mobil in the Arctic. As Russia stands to earn $900 billion (perhaps more) from Cuba in oil, forgiving a $32 billion debt may be worth it to push contract negotiations in Russia's favor.

Of course, perhaps it has nothing to do with oil at all, and Putin was just in a rare good mood that day.

According to Kommersant, Russia and Cuba have finalised (during Putins visit) negotiations on the reopening of the Russian SIGINT centre in Cuba. Apparently negotiations have been ongoing for the past 2 years.

  www.kommersant.ru/doc/2525998

Good Decision , Wonder why they were shut in firs place.

Let's hope S-500's, and Naval/Sub base can be stationed there.

magnumcromagnon wrote:Let's hope S-500's, and Naval/Sub base can be stationed there.

Why?

In what possible scenario would S-500s in Cuba be a good idea for Russia?

Russia needs to do this sort of thing sadly.

Lets just say that the critical thing is the listening station, but it would be useful to defend it from a nuclear strike from ballistic weapons.

When the US objects Russia can say it is an ABM missile and therefore totally defensive blah blah blah, and when the US still demands it is withdrawn Russia can then demand US ABM systems around the world need to be dismantled.

They wont be of course, but it gives Russia leverage... what will the US give to get a promise of no S-500s in Cuba?

Brinkmanship and stupid and unnecessary... but you could say the same about the coloured revolutions in Eastern Europe and former Soviet States and of course the ABM system in Europe.

Pull a kids hair if they keep pulling the fur of your dog... sometimes the best way to learn is through experience.

TR1 wrote:

magnumcromagnon wrote:Let's hope S-500's, and Naval/Sub base can be stationed there.

Why?

In what possible scenario would S-500s in Cuba be a good idea for Russia?

It will give leverage in negotiations regarding NATO's European ABM system. It's time to ask and answer some questions regarding ABM systems: Why is the ABM system so heavily concentrated in Eastern Europe, why is it not more concentrated in Turkey, Israel, Saudi Arabia, etc. if it's directed towards Iran? How is not a contradiction that American, British, French, Israeli neo-cons mock Iranian arms industry capability on one hand, but then fear-monger about the capability of the Iranian arms industry to make nukes and ICBM's lol? When its quite obvious the ballistic missile industry is probably the most difficult military industry to excel at and develop in due to obvious technological and political obstacles. Another question is if the Mid-Course interception system is such a failure in terms of money spent and progress being made, then what's the reason to maintain the idea of using KE hit-to-kill interceptors when's its proven to be an absolute failure in ideal testing conditions? Simple, it's political in nature, the stark reality is that NATO's reluctance to grant legal guarantees and transparency towards Russia indicates that the real warheads may not be KE but thermonuclear in nature, which makes the mid-course system look orders-of-magnitude more viable, and until they have some transparency for their ABM program then it would be foolish otherwise to neglect the possibility!

It won't give leverage because NATO won't give two shits about S-500 in Cuba. It achieves nothing, wastes money, draws precious systems that Russia needs closer to home.

TR1 wrote:It won't give leverage because NATO won't give two shits about S-500 in Cuba.

1.) Wont give two shits? The Neo-Cons who are the biggest cheerleaders for Euro-ABM's, were hysterical and were cackling like jackals over rumors of a Russian base in Argentina which turned out to be completely false, and re-establishing a intelligence base Cuba is likely to infuriate them by itself!

2.) S-500's that cover U.S.'s northwest, placed in Russia far east should undermine the U.S. first-strike potential, and so would S-500's in Cuba covering U.S. southeast and a naval base in Cuba could have S-500 equipped ships escorted by attack and strategic nuclear submarines that can cover the entirety of the Gulf of Mexico, and S-500's in Algeria will undermine Euro-nukes.

Austin wrote:Good Decision , Wonder why they were shut in firs place.

Pressure from US back than. Cuban and Vietnam base where shut because of that - in return Russia was supposed to get some loan.

Putin has denied the Kommersant report

Russia not planning reopening Soviet spy base on Cuba - Putin

Russian President Vladimir Putin has refuted reports that Russia and Cuba agreed to resume work at the Soviet-built intelligence facility in Lourdes near Havana, Cuba. "No, it's not true," Putin answered a question during his meeting with reporters following the BRICS summit in Brazil. “There is nothing to regret, we are capable of solving the challenges in the field of national defense without this component, there is nothing unusual here, we in agreement with our friends closed the work of this center, we have no plans to resume work," said Putin.

Reports of resumption of work at the USSR's largest electronic intelligence facility were published in Kommersant newspaper on Wednesday.

http://rt.com/news/line/2014-07-17/#66192

Tis a shame. Since US is so keen on screwing Russia, Russia should at least open up the base, at a specific lease price, and money can go to Cuba, which they need.

Hopefully Putin is just trolling. But if not, then I wonder what he is planning? Because reason why his allies are disappearing is because lack of Russian engagement and involvement in their economies.

We'll see. I think it's still on the cards...where there's smoke - there's fire.

Russia is doing fine in South America, I don't get what you're on about   

Cuba has a crap economy. No need to waste money on them like we did back in Soviet Times, when it was a multi billion dollar black hole.

It won't give leverage because NATO won't give two shits about S-500 in Cuba. It achieves nothing, wastes money, draws precious systems that Russia needs closer to home.

Hahahaha.. what does nato have to do with this?

Since when did NATO have any say in the US ABM system in Poland?

the US ABM system has nothing to do with NATO.

S-500 will be mobile... in terms of being expensive it is just a case of flying it there on an An-124.

Would be ideally positioned if the US decides to launch its ICBMs over the south pole at Russian targets.

Would require the US spend rather a lot of money on its southern border, which in the past has been rather neglected.

Cuba has a crap economy. No need to waste money on them like we did back in Soviet Times, when it was a multi billion dollar black hole.

Russia should trade with any country that is happy to openly trade with them and not intent on undermining them at every stage.

Russia is rather better off dealing with countries like Cuba etc than backstabbers like the US and UK... and their blind followers like the NATO countries.

TR1 wrote:Cuba has a crap economy. No need to waste money on them like we did back in Soviet Times, when it was a multi billion dollar black hole.

And whos fault is that? Surely not cubas fault, it has not put sanctions on its one head.

If S-500 is going to be positioned in cuba then we we will have another missile crisis similar to that of 1962

TR1 wrote:Cuba has a crap economy. No need to waste money on them like we did back in Soviet Times, when it was a multi billion dollar black hole.

What a chauvinistic/jingoistic viewpoint, it's like your totally oblivious to the fact that Cuba's economic woes is directly related to the U.S. embargo against their economy, is should also be noted that well-over 90%of the counties in the U.N. generally assembly oppose the U.S. embargo on Cuba (only the U.S. and Israel opposed doing business with Cuba, and originally Israel supported the end of the embargo until they had their arms twisted). Taking that in to consideration means that the overwhelming majority of the world's countries/govt's/people support and see value in doing business with Cuba...more value than you care to admit.

George1 wrote:If S-500 is going to be positioned in cuba then we we will have another missile crisis similar to that of 1962

It's fair game, and the U.S. govt. and media will have to admit that ABM proliferation is dangerous and comes with consequences...that in itself is a victory, and we can possibly get some concessions out of that.

GarryB wrote:

Russia should trade with any country that is happy to openly trade with them and not intent on undermining them at every stage.

Russia is rather better off dealing with countries like Cuba etc than backstabbers like the US and UK... and their blind followers like the NATO countries.

It's also rumored that Cuba's oilfields has something like $900 billion+ worth of recoverable oil, if that's true than they can oil barter any thing they need with Russia and any other country, and Venezuela will not have to give as much subsidized oil...so in short Cuba's economy will be on the upswing in the next 5 to 10 years, especially now that large important countries are trying to trade without using the U.S. Dollar.

George1 wrote:If S-500 is going to be positioned in cuba then we we will have another missile crisis similar to that of 1962

We already have this crisis since years, its called US ABM in europe.

It just seems softer because of no russian answer.

No go for this thing in Cuba and IRBMs !!!