Title: Cuba’s Economic Crisis Deepens as Fuel Shortages Worsen
Subtitle: Cuba seeks help from old ally Russia to overcome severe fuel shortages
Cuba is currently facing one of its worst economic crises in recent history, exacerbated by a severe lack of fuel. The Caribbean island nation has been struggling with endemic economic challenges for years, but the fuel shortage has added to the already dire situation. To overcome this crisis, Cuba has turned to its old ally, Russia, for assistance.
Soviet-era cars, such as Jorge Lloro’s navy blue Lada, serve as a reminder of Cuba’s historic ties to Russia. These vehicles, imported during the Cold War, have become instrumental in circumventing the limitations imposed by the long-standing economic embargo imposed by the United States. However, maintaining these vehicles has become increasingly difficult due to scarce and expensive spare parts.
Fueling these cars has also become a grueling task, taking days. At the height of the crisis, long queues of cars at gas stations extended for several blocks. In an attempt to manage the situation, the Cuban government resorted to organizing drivers into WhatsApp groups, assigning them numbers to indicate their turn to fill up. However, the system has proven to be inefficient and ineffective, leading to frustration among drivers.
The fuel crisis is just the latest challenge faced by Cubans, who have already been dealing with food insecurity, inflation, and blackouts. The collapse of tourism due to the COVID-19 pandemic has further compounded Cuba’s difficulties. However, this crisis has presented an opportunity for Russian companies, which have signed agreements with Cuba covering various sectors, including tourism, agriculture, energy, and oil supply.
The agreement to supply 30,000 barrels of crude oil per day is of particular interest to drivers like Jorge. This would help alleviate Cuba’s domestic fuel consumption, as Venezuela has reduced its oil exports to the country from 80,000 barrels per day to around 55,000. The Cuban state media presents these agreements as evidence of the longstanding ties between the two nations.
While closer relations with Russia may offer short-term relief, independent economists, such as Omar Everleny, warn that Cuba cannot rely on a single benefactor to mitigate its economic crisis. Everleny believes that Cuba needs to diversify its foreign dependencies and establish its own strategic production, involving small and medium-sized Cuban businesses. He highlights the risks of depending on private Russian firms, which will demand timely and full payment for their investments.
Despite the challenges, Cuba remains a crucial ally for Russia in the region. Given Russia’s recent invasion of Ukraine, Cuba’s support for the Kremlin has been appreciated by Moscow. However, it is essential for Cuba to learn from past mistakes and establish a more sustainable and diverse economic foundation.
As Jorge Lloro finally manages to fill up his Lada’s tank, he recognizes that his car’s survival depends on Russia’s support. However, he also knows that, similar to the Cuban Revolution, his vehicle will require significant repairs and overhaul in the years to come. The Cuban people continue to endure hardships, and the country’s economic future remains uncertain.
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