The severe fuel crisis forces Cuba to turn to its old ally, Russia, for help

Cuban taxi driver Jorge Lloro is reminded of his country’s historic ties to Russia every time he sits behind the wheel of his navy-blue, Soviet-era Lada.

His Russian-made car is one of an estimated 100,000 cars imported from the Caribbean island during the Cold War.

These machines help Cuba circumvent the restrictions imposed by the economic embargo that the United States has enforced for decades.

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Cuba lives one of the worst moments of its endemic economic crisisaccentuated by a persistent lack of fuel that has led it to resort to the aid of its old ally Russia.

Jorge struggles to keep his car rolling. Parts are scarce and expensive. Filling the tank with fuel is a task that takes days.

In the worst case of this crisis, lines of cars at gas stations stretched for several blocks.

An “inefficient” system

There came a point where the State had to organize the queues of drivers in WhatsApp groups.

An official collects the drivers’ contacts and gives them a number. When it is their turn to fill up, they will be contacted to come with their car.

“I have the number 426,” explains Jorge as he drives to a gas station in Havana after receiving the message.

But when it reaches its position, there is no oil. The tanker did not arrive. “I don’t know why they asked me to come,” Jorge complains.

“This system is inefficient and ineffective”replies Joel Hernández, another driver.

Everyone in line is annoyed.

“They don’t let us fill up, people often lose their number or don’t hear when it’s their turn. Lack of organization and infrastructure.

for weeks, the fuel crisis is making the Cubans desperate.

It’s the umpteenth challenge she faces after the food insecurity, inflation and blackouts.

An opportunity for Russia

Cuba’s difficulties lie in the management problems of his administration and the US economic embargobut they got worse with the collapse of tourism during the coronavirus pandemic.

This meant a unique opportunity for some Russian companies.

At a recent trade forum in Havana, Cuba signed a series of agreements with Russian companies covering everything from tourism to agriculture and energy.

Among the deals were permits for Russian companies to revive parts of the island’s dilapidated tourist infrastructure, including the derelict resort town of Tarará.

A joint project will also be organized to rehabilitate an aging sugar factory in the province of Sancti Spíritus and invest in rum and steel production.

But what interests Jorge and other drivers in line the most is the similarity through which Russia will supply 30,000 barrels of crude oil per day.

That would help ease domestic consumption in Cuba after Venezuela reduced its oil exports to Cuba from 80,000 barrels per day in 2020 to about 55,000.

The Problem of Cuban Dependence

The agreements are presented by the Cuban state media as evidence of the long ties that unite the two nations.

But independent economist Omar Everleny fears that Strengthening relations with Moscow is only a short-term solution for Cuba.

“When you’re dealing with fires on multiple fronts, it’s attractive that Russia gets into this volatile situation, but the problem is in the medium term,” says Everleny.

Russian companies will demand to be paid in full and on time for providing the resources Cuba needs, the economist added.

“It is not Soviet companies that provide government credit. It is private companies that will demand benefits for their investments.

“Will that mean more sacrifices for Cuban families because we have to pay those loans or will another Putin cancel the debt?” he says, referring to Vladimir Putin’s decision in 2014 to cancel some $32 billion in Cuban debt. curse.

The new economic ties come at a complex time.

After the Russian invasion of Ukraine in 2022, Cuba was one of the voices in support of the Kremlin in Latin Americasomething that Moscow appreciates.

“No doubt, Cuba is and will remain Russia’s main ally in the regionThat is what Russian Defense Minister Sergei Shoigu said during a recent visit to Moscow by a high-level Cuban delegation, state media reported.

The economist Everleny emphasizes that Cuba should not make the same mistake of depending on a single benefactor to ease its crisis.

“It happened first with Spain, then with the United States, then with the Soviet Union, and finally with Venezuela. You cannot depend on a single market.”

“I think Cuba needs its own strategic productionin which small and medium-sized Cuban companies play a vital role”.

At the end of a sweltering day at the gas station, Jorge Lloro manages to fill up the tank of his Lada.

But as with the Cuban revolution, his machine can now only keep up thanks to Russia and will need a major overhaul in the coming years.