CUBANET ... CUBANEWS

July 19, 2000



Russia-Cuba trade ties

By Patricia Grogg. Daw, The Internet Edition. 19 July 2000

HAVANA: Cuba and Russia are seeking to restore their economic and trade ties, badly weakened since the break-up of the Soviet Union, Havana's top trading partner until 1989.

Based on a much more pragmatic strategy than the ideologically-tied relations between the USSR and Cuba, Havana and Moscow are keen on boosting two-way trade - which stood at 400 million dollars last year - in sectors like energy, medicine, medical equipment, biotechnology, tourism, oil and sugar.

Moscow is negotiating an agreement to buy Cuba's hepatitis B vaccine. According to off-the-record sources, the deal would entail a reopening of credit lines to the island.A letter of intent was signed early this month by Russian minister for emergency situations Serguei Shoygu, during a brief, low-profile visit to Cuba.

Cuban authorities and Shoygu, who travelled to Havana at the head of a committee that included 40 business representatives, also signed a document referring to prospects for closer economic, commercial, scientific and technical cooperation. Cub-an minister Ricardo Cabrisas said the talks were useful in helping to set in place the foundations for the "relaunch" of economic relations.

But diplomatic sources said moves toward closer economic ties must involve a search for solutions for Cuba's debt to Russia, estimated by Russian parliamentarians at 27 billion dollars. However, Cuban experts say that while broad negotiations on the foreign debt are needed, the issue must not stand in the way of attempts to build closer relations.

Nevertheless, the issue "must definitely be incorporated into the debate on bilateral relations if we really want to give new momentum to our commercial ties," and even expand ties in other areas of common interest, wrote economist Hiram Marqu-etti in an article on the issue.Marquetti, a researcher with the Centre of Studies on the Cuban Economy, said the strengthening of Cuban-Russian relations depended largely on the evolution of Russia's economic and political reality, as well as on Cuba's external financial conditions.

The government of Vladimir Putin seems inclined to make up for lost time in relations with Cuba, whose industry still has a significant Russian technological base. Diplomatic sources in Moscow believe Putin is likely to visit Havana before or after he attends the September 5-6 'Mille-nnium Summit', the special session of the United Nations General Assembly, in New York. Sources close to Cuba's foreign ministry confirmed that the Russian leader has had a standing official invitation to visit Havana since last January.-Dawn/InterPress Service

© The DAWN Group of Newspapers, 2000

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