Russia Readies To Stabilize Cuba’s Economy -By Kestér Kenn Klomegâh

The Caribbean island of Cuba, with a socialist system and a communist party, and with a population estimated at 11.5 million, faces serious deteriorating economic situation. Its labour force is rapidly reducing as many are emigrating to the United States. Most worrying as it may be, more than 2.3 million Cubans who have migrated to the United States generated the volume of remittances (in smaller proportions and scope) stands at less than US$4 billion in 2023, according to Cuban Research Institute. Most of the production are owned and run by the government and the labor force is employed by the state. It is the largest country in the Caribbean by area, but now has an additional economic crisis arising due to economic sanctions imposed by the Donald Trump administration.

According to the historical records, Cuba contributed to the fight against Nazism during the the Great Patriotic War. It fought alongside the Red Army soldiers outside Leningrad, and among other places, so it was very symbolic to be part of the 80th anniversary in Moscow. Cuba was among the 27 world leaders Russian President Vladimir Putin invited to Victor Day military parade, marking the 80th anniversary of the end of second World War (1945). As historically important as it was, Russia considers it as a historic defeat of Nazi Germany, in which an estimated 27 million Soviet citizens died. In spite of the history, Cuba is more interested in the contemporary multifaceted ties with Russia, which has played a kind of unbelievably pivotal role in its entire history, politics and economy dating from the Soviet era until today. After Soviet’s collapse and the end of the Cold War, Cuba has faced serious multitude of economic obstacles, with thousands of its citizens seeking greener pastures in the United States.

The May Day, after all, was not just military parade. Cuban President Miguel Díaz-Canel Bermúdez and Russia’s Vladimir Putin held a useful bilateral meeting, which underscored the depth of their historical ties, at the Kremlin. The Kremlin report pointed to the fact that diplomatic relations were restored 65 years ago. Russia and Cuba have had common challenges, programmes, projects, and thus come to this significant milestone. Official discussions further reflected Russia’s preparedness to construct various infrastructure projects planned for country. Cuba’s human resources could be used in the vast agricultural fields to boost agricultural production, and other economic parameters.

In short, Cuba remains as Russia’s reliable priority partner in Latin America. And Havana has been negotiating for financial support, and Russian businesses would invest in a range of economic areas totaling more than US$1 billion by 2030, according to the Cuba’s presidency. On the other side, Russian Deputy Prime Minister Dmitry Chernyshenko also explained in a statement that Russia this time would subsidise interest rates for businesses interested in investing in Cuba as part of the plan, referring to Cuba a “reliable partner” but still a lot of hard work has to be done in the near future. 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.

Russian Foreign Minister Sergey Lavrov’s article for Cuban media devoted to 65 years since recovery of diplomatic relations between Moscow and Havana indicated Russian travelers increasing interest in Cuba’s tourism destinations. In 2024, the number of Russian travelers to the island reached a record-breaking 186,000 people. Russia collaborates in such sectors as energy, industry, agriculture, technologies, education, culture, and sports. The extension of the portfolio of bilateral investment initiatives is under discussion, with their total number currently surpassing 100, Lavrov underlined in his article.

State Duma, Russia’s lower chamber of legislators, has thoroughly reviewed multifaceted ties with Cuba during the first-class interaction during a special session in which the visiting President of the National Assembly of People’s Power and President of the Council of State of Cuba, Esteban Lazo Hernández, participated in Moscow. In an effort to further solidify the long-standing ties, dating from Soviet era with Russia, Hernández’s official working visit, at the same time, reflected a strategic push for consolidating economic and security partnership with the Kremlin and State Duma.

Chairman of the State Duma Vyacheslav Volodin and Esteban Lazo Hernández, in their address both at the Federal Assembly of the Russian Federation, as well as party-level talks with the ruling United Russia party, have striken common themes such as seeking dialogue based on the principles of mutually beneficial cooperation, the absence of double standards, and non-interference in the internal affairs of sovereign states. Russia and Cuba are concerned over the possibility of overcoming existing challenges and countering Western sanctions. For example, Cuba has been under sanctions pressure, doing everything to protect its sovereignty, for these 65 years.

Hernández expressed gratitude to Vyacheslav Volodin and his Russian colleagues for the warm welcome and the opportunity to hold negotiations, and created such a working mechanism to give impetus to the parliaments, and also within the framework of permanent contacts of the committees. “During this time, we have managed to strengthen the roots of friendship as true brothers who have passed all the tests of time. Russia and Cuba are strategic partners, allies,” added the Speaker of the Parliament of Cuba.

In the context of shifting geopolitical situation, Russia and Cuba have entered a period of intensive highest-level of frequent interactions, which Foreign Minister Sergey Lavrov described as paving the way for an agreement on strengthening strategic partnership across the board and stepping up coordination on the international stage, and while making sure that these initiatives materialize by drafting the corresponding decisions and resolutions.

The Russian-Cuban Joint Intergovernmental Commission on Trade, Industrial, Scientific and Technical Cooperation held its meeting. Deputy Prime Minister Dmitry Chernyshenko visited Havana, Cuba. The Joint Commission has been discussing measures necessary for the development of bilateral relations, including in such areas as agriculture, energy, tourism and education, as well as legislative activity to counter foreign interference in internal affairs and protection of national security and sovereignty.

Esteban Lazo Hernández thanked Russia for providing support to Cuba in its fight against the embargo, the statements were adopted by the State Duma. Russia has always helped Cuba in the most difficult moments for the island country at the backyard of the United States. Russia and Cuba have excellent political relations. Both have similar views on major issues on the international agenda and there is decisive interaction within the framework of international organizations, and working for preserving a multipolar order in the world.

But the global geopolitical landscape presents Cuba new challenges and world-wide opportunities for designing entirely a drastic approach towards its accelerated development, economic investment and resuscitating the entire economy. Cuba has huge tourism potentials, and the exports of skilled labor, sugar, tobacco, and coffee. With looming uncertainty, it’s about time to analyse the realities, and choose multiple strategic pathways to shape Cuba, (located where the northern Caribbean Sea, Gulf of Mexico, and Atlantic Ocean meet), as a first-class and well-developed paradise for its estimated at 11.5 million.