Putin approved protocols to defer payment of Cuban debt | New

Russian President Vladimir Putin has signed a law ratifying four protocols to the Russian-Cuban intergovernmental loan agreements granting Havana a deferral of payments, the Legal News Portal published today.

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The document was ratified on June 8 by the Russian Federation Council (Senate) and on May 24 by the State Duma (lower house of parliament).

During the exchange of views on the issue in the upper house, the senators stressed that the extension of these agreements will help Cuba finance oil supplies and will help strengthen Russia’s positions in Latin America.

The Federation Council’s International Affairs Commission noted that cooperation between Cuba and Russia is of particular importance to the country.

“Providing assistance to the friendly Republic of Cuba in the area of ​​financing the purchase of oil and its derivatives will contribute to strengthening the political positions of the Russian Federation in Latin America,” the committee stressed.

One of the protocols modifies the bilateral agreement on the granting of a state loan, dated January 30, 2009, and another on the approval of a credit to finance the supply of oil and its derivatives in Cuba, initialed on March 20, 2017.

Two others extend the respective agreements between Moscow and Havana on the granting of loans to finance the supply of oil and its derivatives to the Caribbean island, signed on December 13, 2017 and July 19, 2019.

Between 2006 and 2019, Russia provided Cuba with state export loans amounting to two billion three hundred million dollars, the explanatory note to the new law says.

The funds were granted to the Caribbean nation to finance projects in the fields of energy, metallurgy, transport infrastructure and the supply of products to develop and support its economy.

Due to the difficult situation in the country, caused by the tightening of the American blockade and the impact of the crisis caused by the Covid-19 pandemic, Cuba has stopped repaying the state loans granted by Russia since the beginning of 2020 and asked in September for a restructuring.

Following Havana’s request to review the repayment terms for Russian state borrowing debts, the parties signed on August 7, 2021 intergovernmental protocols to defer payments.