Russia and Cuba: Remembering the Cold War

Cuba's President, Raul Castro and Russia's Prime Minister, Dmitry Medvedev

Russia to lease eight jets worth $650 million to its Cold War- era ally Cuba and will partially write off the country's multi-billion-dollar debt owed during the Soviet-era under agreements signed during Prime Minister Dmitry Medvedev's visit to Havana.

Moscow will write off part of the $30 billion debt and will offer a 10-year refinancing plan for the remaining amount, according to the preliminary agreement, Russia's industry and trade minister Denis Manturov told reporters on the sidelines of the talks.

"There was an accumulated debt on loans allocated by the Soviet Union and we have now prepared an agreement that should undergo all the necessary procedures," he said.

Manturov said the final decision on debt settlement will be signed by the end of the year.

Russia will also lease three Ilyushin-96-400 long-haul jets, three AN-158 regional planes and two TU-204SM mid-range aircraft to Cuba under the agreements inked in the presence of Medvedev and Cuban leader Raul Castro.

Moscow will provide sovereign guarantees to a syndicate of Russian banks financing the deal, Manturov said.

Medvedev and Castro were seen chatting informally and broadly smiling during the ceremony. The Cuban leader greeted reporters in Russian.

Russia and Cuba enjoyed close relations during the Cold War which was between the Soviet Union and Washington over world hegemony and supremacy.

The volume of trade between the two countries last year was roughly $200 million. Oil companies from Russia, the world's largest energy exporter, are drilling into Cuba's offshore oil deposits which has also being of interest to the United States.

Cuba and the United States: Who is tired of Who?

                               

                                 Cuban President: Raul Castro

A seven-member delegation of US lawmakers arrived in Cuba in an effort to improve political relations that have been frozen since US government contractor Alan Gross was imprisoned there in 2009.

Democratic senator Patrick Leahy, who saw Gross and met with Cuban president Raul Castro and other high-ranking officials a year ago, led the group of five senators and two members of the House of Representatives on a three-day visit to communist Cuba.

"There are obvious problems between our two countries, but we are not here to negotiate. We are here to listen and then go home and talk about what we see," according to Patrick Leahy.

"We all want to see relations improve and both sides take steps in that direction," US Senator Patrick Leahy said.

The lawmakers, all Democrats except for Arizona senator Jeff Flake, include congressmen Chris Van Hollen, who represents Gross's district in Maryland, and Jim McGovern of Massachusetts; and senators Debbie Stabenow of Michigan, Sherrod Brown of Ohio, Sheldon Whitehouse of Rhode Island.

Members of the group said they planned to meet with Gross, parliament president Ricardo Alarcon, foreign minister Bruno Rodriguez and perhaps Raul Castro.

Leahy said the delegation would like to take Gross with them when it leaves for Haiti on Wednesday, an occurrence that might not see the light of day.

"There are obvious problems between our two countries, but we are not here to negotiate. We are here to listen and then go back home and talk about what we see," he said.

Despite the tension between the US and Cuba, more people travelled between the two countries in 2012, cash remittances sent to the island also increased, as did food-for-cash sales under a 2000 amendment to US trade embargo.

President Castro has lifted most travel restrictions and freed Cubans to buy and sell homes and cars over the past year, even as he accelerates efforts to reform the Soviety-style economy in a more market-friendly direction. The Obama administration has said relations will not improve while Gross remains in custody.

In addition, under the 1996 'Helms-Burton' law, sanctions cannot be lifted until Cuba's one-party communist political system is changed, a demand rejected by the Cuban government. Gross, 63, was arrested in Havana in December 2009 and sentenced to 15 years in prison for installing Internet networks under a secretive US program the Cuban government considers subversive.

The case put the brakes on a brief warming in long-hostile US-Cuba relations during the first 11 months of Obama's first term in office. Raul Castro's mild reforms have helped in reducing tensions between Havana and Washington.

Cuba has linked Gross' fate to that of five agents imprisoned in the late 1990s for infiltrating Miami exile organisations and US military bases. The agents, known as the Cuban Five, were sentenced to long terms ranging from 15 years to life and are considered heroes in Cub.

When Fidel castro became ill, Obama extended an 'olive branch' to Cuba and Raul Castro to help bring about democratic change, a move many Cubans rejected. Now, it seems Cuba struck the US where it matters.