Russia Grants $355 Million Loan to Fidel Castro
Russia has given Cuba a $355 million loan, hoping for a better future for Cuba without Fidel Castro. Russia also looks forward to settling Cuba’s $26 billion debt to the USSR which has not been discussed for a long time. Russian Prime Minister Mikhail Fradkov finished his visit on Cuba yesterday where he discussed clearing Cuba’s $166 million debt before Russia. The prime minister, however, did not raise the issue of the $26 billion debt to the Soviet Union. The Russian government believes that this matter should be negotiated only after Fidel Castro’s regime has changed. Fidel Castro’s government stopped any debt payments to Russia in 1999.

Mikhail Fradkov met Cuba’s Vice-President Raul Castro and wished Cuba’s people to see the Commandante well soon. Cuba’s solvency seems to improve as Fidel Castro’s health is worsening. China has recently offered Cuba a large inter-state loan. Meanwhile, Canadian investors have gained the right to develop the nickel deposits that two Russian companies tried to buy three years ago. Venezuela, India, Argentina and Spain are eager to take part in developing oil deposits on the Cuban shelf.

Russia has bough a pass to this club of Cuba-lovers by a new loan. What is more, the time for Cuba to re-pay $166 million debt to Russia has been prolonged by 10 years. Cuba is expected to use the new $355 million loan in the next two years. This loan as Cuba’s old debts is to be cleared in 10 years with 4-year period of grace and a 5-percent annual interest rate.

Apart from solving debts problems, Russia should revive its economic cooperation with Cuba, Mikhail Fradkov believes. Commodity turnover with Russia was only $186 million in 2005, official data show.