Putin writes off 90 percent of Cuba's debts to USSR

11 July 2014 14:07
(QHA) -

Russia's parliament has ratified an agreement that will see Moscow write off 90% of cash-strapped Cuba's $35.2bn debt to the Soviet Union, the press service of the Kremlin reports.

Cuba's first payment is expected in October, and will be paid into an account opened by Russian state-owned lender Vnesheconombank at the National Bank of Cuba.

It is supposed that these funds will be used to finance investment projects in Cuba. Earlier, Zarubezhneft and Inter RAO UES showed 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 the loan.           

Putin began his tour of the region in Cuba on Friday. He will also travels to Argentina and Brazil to attend the World Cup final on July 13 in Rio de Janeiro and meet BRICS leaders in Fortaleza on July 15-16.

Russia will be introduced at the World Cup closing ceremony as the host of the next tournament in 2018.

Photo: EPA