HAVANA (Reuters) – Russia said its businesses would invest more than $1 billion in long-time political ally Cuba by 2030, Cuba’s presidency said on Thursday, promising a lifeline for the communist-run Caribbean island amid a gruelling economic crisis.
Russia had previously announced the so-called “Plan 2030” with Cuba, but for the first time put a price tag on a range of proposals to invest in key areas including electricity production, agriculture and public lighting.
“Under this Plan, Russian companies and businesspeople have expressed their willingness and confirmed their readiness to invest more than $1 billion in the Cuban economy,” said Russian Deputy Prime Minister Dmitry Chernyshenko.
The statement immediately followed a meeting between Cuban President Miguel Diaz-Canel and Russia’s Vladimir Putin at the Kremlin.
Punishing sanctions from the United States, collapsing tourism and inefficient state-run production have hamstrung Cuba’s economy, leaving it with little room to manoeuvre.
Russia, which also faces stiff U.S. sanctions, has over decades provided Cuba with both financing and material goods, including cargoes of oil, infrastructure investments and, most recently, the promise of droves of Russian tourists.
But Russia has often delayed and cancelled projects with Cuba in the past, saying the island nation has failed to make good on payments.
Chernyshenko said Russia this time would subsidise interest rates for businesses interested in investing in Cuba as part of the plan, calling Cuba a “reliable partner”.
The timeline for the coming $1 billion in promised investment is unclear.
“There’s still a lot of hard work to be done, we’ll advance little by little,” Chernyshenko told reporters in Moscow, adding that “it is impossible to achieve things immediately, as if by magic”.
During his visit to Moscow and St. Petersburg this week, Cuba’s Diaz-Canel also attended commemorative events for the 80th anniversary of the victory of the Soviet Union and its allies over Nazi Germany.
(Reporting by Dave Sherwood; Editing by Ewan Harwood)
