Russia pledges financial lifeline to Cuba following US-led oil disruptions

Russia has announced its readiness to provide direct financial assistance to the Havana government as Cuba’s economic crisis deepens following the halt of Venezuelan oil shipments—a disruption triggered by US demands.

Russian Foreign Minister Sergei Lavrov conveyed Moscow’s support during a telephone conversation with Cuban Foreign Minister Bruno Rodriguez Parrilla. The Russian Foreign Ministry stated that the call focused on bilateral cooperation and priority issues on the international agenda.

During the discussion, Lavrov emphasized that Washington’s actions against Cuba are “unacceptable.” He warned that blocking oil shipments would severely exacerbate the economic and humanitarian situation on the island. “Our commitment to maintaining the necessary political and material support for Cuba remains absolute,” Lavrov stated.

In 2014, Russian President Vladimir Putin forgave more than $32 billion of Cuba’s Soviet-era debt, representing 90% of the $35.2 billion total. At the time, that figure accounted for approximately 8% of Russia’s total annual budget expenditures. The remaining balance consisted of state and commercial loans, alongside deposit accounts in various currencies.

The Kremlin continues to describe Cuba, a staunch ally since the 1960s, as one of its key partners in the Western Hemisphere. In addition to debt relief, Moscow continues to provide financial and technical aid. Following Cuban President Miguel Diaz-Canel’s visit to Moscow last year, Russian Deputy Prime Minister Dmitry Chernyshenko announced that Russia is prepared to invest $1 billion into the Cuban economy over a five-year period.

Twelve-project cooperation plan

The Russia-Cuba cooperation plan, which took effect in 2024, encompasses 12 strategic projects across six different sectors. These initiatives include the revival of Cuba’s sugar industry, the organization of taxi services using Moskvich-brand vehicles, and the construction of hotels in Cuban resort areas.

Furthermore, Moscow provided Havana with a €1.2 billion loan in 2015 for the construction of two power plants. In 2023, Putin approved a deferment of the repayment schedule for this credit.

In late January, US President Donald Trump signed an executive order allowing for the imposition of tariffs on any country supplying oil to Cuba. The Trump administration asserts that the Cuban economy is on the brink of collapse following the US military intervention that resulted in the abduction of Venezuelan President Nicolas Maduro, the regime’s primary benefactor, effectively cutting off the island’s oil lifeline.