Cuba and Russia seek to expand cooperation in the medium and long term, by Miguel Fernández Martínez for SputnikMundo. 07.17.2023.
HAVANA (Sputnik) — Cuba and Russia are promoting cooperation and investments in the medium and long term, with a view to expanding Moscow's participation in the island's National Economic and Social Development Plan until 2030, the head of the Russian Trade Representation in this country, Sergey Baldin, told Sputnik.
"Both sides have already begun to take the first steps in this direction. During the recent visit to Cuba of a multisectoral delegation headed by the adviser to the President of Russia for Economic Affairs, Maxim Oreshkin — last May — a memorandum of understanding was signed for the implementation of the Russian-Cuban Investment Initiative," said Baldin.
Faced with such prospects, the diplomat considered that, with a more active participation of Russian investors in the development of the strategic sectors of the Cuban economy, both countries have good possibilities to achieve a higher level of interaction in this field.
Strategic investment sectors
According to Baldin, among the strategic sectors of the Cuban economy in which Russia can invest, energy, the sugar industry, mining, agriculture, food production, civil aviation infrastructure, transport and tourism stand out.
"It is worth mentioning the Russian presence in the development of the Boca de Jaruco oil field [northwest], where significant progress has been made in increasing oil production with the use of Russian cutting-edge technologies in geology and equipment, with guarantees that favorable conditions are provided for the implementation of the project by the interested Cuban structures," the trade official said.
He gave as an example of the successful implementation of joint industrial projects the commissioning of an electric steel mill at the José Martí Antillean Steel Company in Havana, with the capacity to produce between 220,000 and 250,000 tons of metal per year.
"The next stage will be the commissioning of the rolling mill plant," he added, whose further modernization is supervised by the Commercial Representation of the Russian Federation in Cuba.
Aid and collaboration in times of crisis
Baldin assured that there is understanding and a firm will between Cuba and Russia to achieve remarkable progress and dynamics that strengthen multilateral ties, including cooperation and investment in the areas of energy, transportation, agri-food sector, raw materials for producing medicines, sugar industry, mining, agriculture, civil aviation infrastructure and tourism.
"It is also about our support to overcome some of the difficulties that have affected the Cuban economy in recent years for various well-known reasons, including the coronavirus pandemic and natural disasters," he stressed.
As part of that collaboration, he also mentioned the wheat supplies to Cuba through the Russian Ministry of Emergency Situations, as well as the implementation of the Russian initiative to donate 15,000 LED lamps for urban infrastructure needs.
"I am convinced," Baldin added, "that in the context of the current [economic, commercial and financial] blockade of the island by the United States and the numerous Western restrictions imposed on Russia, it is vital that we continue on the path of pooling our economic, scientific, technical and production capacities and potentials, that we develop joint approaches to building new transport routes and logistics chains and conduct financial operations without looking at our former partners."
He also stressed that, after the departure from Russia of Western companies that invested on a large scale in the construction of plants, including the automobile factories of prestigious Western brands, or that bought many well-known Russian brands of consumer goods, food products, among others, niches quickly filled by Russian companies, including small and medium-sized ones, became vacant.
This will allow, he added, that cargo flows can be redirected to the promising markets of friendly countries, as Cuba has historically been, so it is to be expected that traditional Cuban exports will be able to occupy their market niches in the Russian regions.
"The work in this area is being developed at a good pace with the participation of the ministries, departments and interested commercial structures of Russia and Cuba, which aims to achieve concrete results, which are already noticeable. Thus, for example, the volume of bilateral trade between January and April of this year increased almost nine times compared to the same period last year," Baldin stressed.
A new stage of collaboration
The head of the Russian Trade Representation in Havana recalled the comprehensive assistance provided by the former Soviet Union (USSR) between 1960 and 1990 to the people of Cuba, a former key partner for Moscow in Latin America.
"At that time, bilateral trade and economic ties were developing at full speed with the participation of the corresponding Soviet ministries, state foreign trade associations and companies operating in almost all sectors of the Cuban economy."
At that time — he recalled — technical assistance was provided on a large scale, large energy and industrial facilities were being built that are still operating, but require significant modernization. He recalled that regular deliveries of Soviet aircraft, tools, industrial and agricultural machinery, vehicles, food and many other types of products were also established, which were delivered to the island by sea and by air, and also cooperation in the area of fishing, all with a great demand in Cuba.
"After the disintegration of the Soviet Union, in the 1990s, we, like Cubans, faced economic difficulties, which also affected bilateral cooperation. In Cuba, these years are known as the "special period". After overcoming the crisis, we preserve the hope of resuming relations of friendship and mutual benefit already in the conditions of Russia's reality," Baldin emphasized.
With a hopeful look, he assured that today, as in the times of the USSR, products and goods with the label "Made in Russia" are in demand in Cuba again. For example, the diplomat pointed out the circulation in Cuba of old preserved Soviet cars, such as Moskvich, Niva, Zhiguli, Volga, along with more modern ones, such as Gazelle, Kamaz, Lada Moderna, UAZ.
"New Russian locomotives and wagons are also circulating on Cuban railways for the transport of sugar cane, cement and other goods, and local railway specialists received training in our country," he added.
For Baldin, the commercial, economic, technical and scientific potential accumulated during the Soviet era will provide Russian companies with good opportunities to develop it today under the new circumstances.
"In this way, we show our willingness to extend the hand of friendship to Havana again, something that on a practical level confirms the successful implementation of the aforementioned projects and others of mutual benefit," he concluded.
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