Russia’s President Vladimir Putin started his visit to Latin America with Havana as his first stop and signed several agreements on cooperation with this country. In addition, he has promised to assist in overcoming the illegal blockade of the island imposed by the United States.
Russian President Vladimir Putin signed the debt write-off Friday, the Kremlin said in a statement, after the country's parliament had approved the law. The remaining part of the debt ($3.5 billion) will be paid by Cuba within 10 years with equal semi-annual payments.
The first payment should be received on October 25, 2014 and the last one, on April 25, 2024. The money will be paid in US dollars into an account opened by Russian state-owned lender Vnesheconombank at the National Bank of Cuba.
It is assumed that these funds will be used to finance investment projects in Cuba. Previously, Zarubezhneft and Inter RAO UES have already shown interest in these projects.
The Cuban debt includes project covenants that were funded from the state loans of the former USSR, and also interest from the principal debt, accumulated during the period of use.
"We will provide support to our Cuban friends to overcome the illegal blockade of Cuba," Putin said after a meeting with Chairman of the State Council and the Council of Ministers of Cuba Raul Castro.
The United States maintains a 52-year-old economic embargo that effectively shuts out many Western companies from doing business in Cuba.
