Reviving Bonds: On Tuesday, a Russian navy training ship, Perekop, gracefully entered Havana, symbolising their renewed friendship. A nearby colonial fort fired cannons to mark the historic occasion. The first such visit in years symbolises Russia and Cuba’s renewed alliance. Cuba is increasingly supporting Russia despite its invasion of Ukraine. This article discusses this visit and Russia-Cuba relations.
Prensa Latina, Cuba’s state-run news service, reported that the Perekop’s sailors would participate in many activities during their four-day stay in Havana. The Cuban public would also get to tour the ship, strengthening relations. The Soviet Union’s collapse nearly destroyed Cuba’s economy, making the visit crucial.
In a rare interview with Russian-controlled RT, Cuban President Miguel Diaz-Canel expressed his strong support for Russia. He opposed NATO expansion and US economic sanctions against Russia. He also praised Russia-Cuba collaboration, emphasising its importance.
Agreements and high-level delegations have strengthened the alliance between the two nations. Russia has been granted a 30-year lease on Cuban land, enabling the development of beachside tourist facilities near Havana. A Russian supermarket and fuel for Cuba are also in the works. These measures aim to boost Cuba’s economy and meet its needs.
Oil’s Lifeline
Russia’s oil aid to Cuba is crucial. Since the Ukraine conflict began, Russia has supplied Cuba with more oil than at any time since the fall of the USSR, according to Jorge R. Piñon, a senior research fellow at the University of Texas at Austin Energy Institute. Piñon estimates Russia delivered $167 million in oil in 2023. This oil has saved cash-strapped Cuba, especially during times of scarcity when car fill-up lines have lasted days.
READ MORE: Thailand’s Democratic Crossroads: A Pivotal Vote for New Leadership“
Nostalgia to Now
Cuba and the USSR were closely allied during the Cold War. A towering Havana embassy symbolising resistance to U.S. imperialism housed thousands of diplomats, spies, and military advisers. A generation of Cubans studied in Soviet countries, and a popular TV game show called “9550” quizzed participants about Soviet life and gave the winner a paid trip to the USSR. After the Soviet Union collapsed, Cuba’s main trading partner was severed. Thus, Cubans either remember their past relationship with Russia fondly or bitterly.
The Russian-Cuban alliance’s revival has some observers lamenting missed US opportunities. Former President Barack Obama restored diplomatic relations and eased economic sanctions on Cuba, but President Donald Trump reversed much of that progress. President Joe Biden has maintained sanctions while demanding the release of prisoners from two years ago’s protests.
The Cuba Study Group’s executive director, Ric Herrero, worries about the current U.S. administration’s disengagement. The U.S. has been indifferent to Cuba, easing sanctions for humanitarian reasons and allowing travel, remittances, and embassy staffing. Russia fills the US void.
The U.S. Embassy in Havana’s Chargé d’Affaires, Benjamin Ziff, warns against overestimating Russia’s influence. Despite rhetoric, he suggests there is little evidence of increased Russian presence. Ziff urges the Cuban government to prioritise their geographical proximity and long-standing relationship over other alliances.
Cuban geopolitics Of Reviving Bonds
Russia and the US have recently shown military might in Cuba, highlighting the ongoing struggle for influence. The Cuban government called the U.S. visit by a nuclear submarine to Guantánamo Bay a provocative escalation. This event recalls the Cuban Missile Crisis, when the U.S. and USSR were on the brink of nuclear war. Cuba’s strategic importance is highlighted by East-West rivalry today.
Russia’s Consistency
Russia remains loyal to Cuba despite the high cost of the Ukraine war and economic sanctions. In late June, Russian Defence Minister Sergey Shoigu stressed Cuba’s importance as Russia’s regional ally during a meeting with Alvaro Lopez Miera in Moscow. Shoigu called Cuba the “island of freedom” and pledged to help whenever needed.
Conclusion Of Reviving Bonds
The Russian navy’s training ship Perekop’s visit to Havana marked a turning point in Russia-Cuba relations. This event shows the growing economic cooperation and international support between the two nations. Experts warn against underestimating Russia’s influence in Cuba despite the US’s distance. Cuba’s future is uncertain as geopolitical rivalries continue.
Our Reader’s Queries
Will bonds recover in 2023?
Despite the repetition, it’s worth noting that bonds are currently undervalued and could be on the upswing, based on the late 2023 price recovery. Choosing the right bonds will be crucial, as well as being able to handle some ups and downs.
Should I sell my bonds now 2023?
In May 2023, the new interest rate of 3.38% may have made you think, “I don’t want that. I want to get out.” However, if you want to keep earning high interest, you should wait another 8 months before cashing out. Update: All I Bonds are no longer earning the 6.48% rate.
Can bonds bounce back?
Goldman Sachs Asset Management strategist, Ashish Shah, predicts that the bond market will recover from this year’s unprecedented decline and experience an outstanding 2024. Bonds are set to shine in 2024, as per Shah. The asset class has shown signs of improvement in the past few months following a sharp drop in October.
Will bonds recover in 2024?
Concluding remarks: With stable income assessments and a unique inflation pattern compared to recent years, 2024 is anticipated to be a favorable period for bonds. Nevertheless, similar to the current year, it won’t be smooth sailing all the way. That’s why it’s crucial to adopt a flexible strategy and make smart choices when it comes to countries and companies in order to fulfill the potential.