El Presidente Posted July 5, 2023 Posted July 5, 2023 https://www.bbc.com/news/world-latin-america-66098774 Crippling fuel crisis turns Cuba to old friend Russia IMAGE SOURCE,GETTY IMAGES Image caption, Cuba's acute fuel shortages come on top of years of food insecurity, inflation and electricity blackouts By Will Grant BBC Central America correspondent Cuban taxi driver Jorge Lloro is reminded of his nation's historic ties to Russia every time he gets behind the wheel of his navy blue, Soviet-era Lada. His boxy Russian-made car is one of an estimated 100,000 that were imported to the Caribbean island during the Cold War. Over the years, the fleet of Ladas arrived in Cuba as a means around the decades-long US economic embargo on the island. Now, amid a crippling fuel crisis and a dire economic outlook, the island's leadership has again turned to its old ally, Russia, for help. For Jorge, it's been a constant struggle to keep his car on the road - spare parts are scarce and expensive. Now, even filling the tank with petrol has become a days-long ordeal. At the height of the crisis, the queues of cars at the petrol pumps stretched for several city blocks. Eventually, the state had to organise the hordes of waiting drivers into WhatsApp groups. A state employee would take down your contact details and issue a number. When it was eventually your turn to fill up, you'd be contacted to come to the garage. "I'm number 426," explained Jorge as he drove us to a petrol station in Havana, having received an alert. Image caption, Taxi drivers like Jorge Lloro are struggling to make a living without easy access to fuel At the garage forecourt, though, no petrol was flowing after the tanker failed to arrive. "I don't know why they even told us to come," complained Jorge. "This system is inefficient and ineffective," echoed another driver, Joel Hernandez, who was expressing the exasperation of everyone in the queue. "We're not allowed to fill an entire tank, people often miss their number or aren't informed when it's their turn. It lacks proper organisation and infrastructure." For weeks, the fuel crisis has pushed the beleaguered Cuban people to the brink of desperation. It's the latest in a series of major challenges they have faced recently: food insecurity, inflation and electricity blackouts. Cuba's long-standing woes stem from government mismanagement and the US economic embargo, but were worsened by the collapse of the tourism industry during the coronavirus pandemic. For some Russian companies, though, that has presented a unique opportunity. At a recent trade forum in Havana, Cuba signed a series of agreements with Russian businesses covering everything from tourism and agriculture to energy. IMAGE SOURCE,GETTY IMAGES Image caption, Many drivers have to wait days to enter petrol stations and face limits on how much fuel they can buy Among the deals reached were concessions to Russian firms to revitalise parts of the island's decrepit tourism infrastructure, including the decaying beach resort of Tarara. There will also be a joint project to overhaul an obsolete sugar mill in Sancti Spiritus province, as well as investment in rum and steel production. However, of most interest to Jorge and the other waiting drivers is an agreement for Russia to provide around 30,000 barrels of crude oil a day. That would help make up a shortfall in the island's domestic consumption after oil-rich socialist ally, Venezuela, dropped its crude oil exports to Cuba from 80,000 barrels a day in 2020 to around 55,000. It's being heralded in the Cuban state media as evidence of the two nation's lasting ties. But the island's leading independent economist, Omar Everleny, fears the decision to forge closer relations with Moscow is only a short-term fix for Cuba. "When you're putting out fires on several fronts, it's attractive that Russia comes in to shore up that unstable situation. But the problem lies in the medium term," he says. The Russian firms will expect to be paid on time and in full for putting up the funds which Cuba so desperately needs, adds Mr Everleny. "These aren't Soviet companies giving out government credits. They're private Russian firms who will demand a proper return on their investment." IMAGE SOURCE,GETTY IMAGES Image caption, New deals with Russia hope to bring Cuba's tourism sector back to life after it was badly hit by the pandemic "Will that involve further sacrifices for Cuban families because we'll have to pay back those credits or will there one day be another Putin figure who'll forgive the debt?", he says, referring to a decision in 2014 by Russian President Vladimir Putin to forgive some $32bn (£25bn) of Cuba's debt. Certainly, the new economic ties come at a particularly complex moment. After Russia invaded Ukraine last year, Cuba has been one of Moscow's few vocal supporters in Latin America, something clearly appreciated by the Kremlin. During a recent visit by a high-level Cuban delegation to Moscow, Russian Defence Minister Sergei Shoigu was quoted in state media as saying: "Without a doubt, Cuba has been and continues to be Russia's most important ally in the region." Maybe so, but economist Omar Everleny says Cuba cannot repeat the mistake of having a single benefactor to pull the island from its economic mire. "It happened first with Spain, then the US, then the Soviet Union, then Venezuela. You can't depend on a single market," he says. "I think Cuba needs to make its own production strategy - one in which the small and medium-sized private businesses - Cuban businesses - should play a key role." At the end of a sweltering day outside the petrol station, Jorge Lloro was eventually able to fill up his Lada. But like the Cuban Revolution itself, it's essentially running on fumes, only able to maintain momentum with Russia's help and in need of a major overhaul in the years ahead.
NSXCIGAR Posted July 5, 2023 Posted July 5, 2023 I was wondering why there weren't doing that from the start. Why wait in line for days when you can do numbers and come back when it's your turn. Waiting a week for gas isn't the problem, it's waiting at the gas station for a week.
Corylax18 Posted July 5, 2023 Posted July 5, 2023 16 hours ago, NSXCIGAR said: I was wondering why there weren't doing that from the start. Why wait in line for days when you can do numbers and come back when it's your turn. Waiting a week for gas isn't the problem, it's waiting at the gas station for a week. Because their internet/cell connections are garbage. As the article stated, it often still doesnt work. Imagine if the US or a major European Government had to rely on whatsapp for such basic functions. 17 hours ago, El Presidente said: The Russian firms will expect to be paid on time and in full for putting up the funds which Cuba so desperately needs, adds Mr Everleny. Hhhmm. Interesting how Russia is painted as the "Friend" when they require Cash Before Shipment, but the U.S. is an evil empire when we do the same. This article fails to mention it, but we've discussed it in previous threads on this same issue. Cuba doesn't have the storage or refinery capacity to handle what Venezuela is sending, so they've recently been selling off those shipments of crude before they even leave Venezuela. This new "offer" is nothing but arbitrage by the two governments. Russia cant sell this oil anywhere else, so Cuba gets it for cheap, then resells it off to another country, theoretically at a profit. If any profit is achieved it will go straight into the pockets of the people that control Cuba. The gas crisis wont get better and the Cuban people wont see any improvement. This whole thing is just more propaganda. The Cuban and Russian Governments are just two lead weights, dragging their citizens under. 1 1 1
El Presidente Posted July 5, 2023 Author Posted July 5, 2023 1 minute ago, Corylax18 said: , so they've recently been selling off those shipments of crude before they even leave Venezuela. That is not new Cory, they have been doing it for 20+ years. Doctors and Nurses to Venezuela. Payment by Oil. Sell Oil to Bolivia/Chile/Honduras etal. Payment into Spanish bank account. 1 1
Corylax18 Posted July 5, 2023 Posted July 5, 2023 4 minutes ago, El Presidente said: That is not new Cory, they have been doing it for 20+ years. Doctors and Nurses to Venezuela. Payment by Oil. Sell Oil to Bolivia/Chile/Honduras etal. Payment into Spanish bank account. Maybe I should have said, they're selling more than ever. They lost about 800,000 barrels of storage capacity when the Matanzas super tanker base burned. They haven't recovered any of it yet. Covid was a boon for them, between selling Vaccines and Doctors they must have made a killing. I wonder where they got the money to build the half a dozen new luxury hotels that opened/will open in 2022/2023? Its so depressing.
NSXCIGAR Posted July 6, 2023 Posted July 6, 2023 4 hours ago, Corylax18 said: Because their internet/cell connections are garbage. As the article stated, it often still doesnt work. Outside Havana I'm sure it sucks but I've rarely had a problem anywhere in Havana with a Cubacel SIM... They could also just hand out tickets at the stations on paper or something or have a license plate log. Anything. Just seems like an awfully long time for them to figure something out so people aren't literally sleeping in their cars on the side of the road.
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