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Malay Mail
a day ago
- Business
- Malay Mail
From steel mills to solar panels: China is quietly supplanting Russia as Cuba's main benefactor
China is financing 55 new solar electricity projects across Cuba in 2025 Chinese ships arrive at Mariel port carrying solar panels, parts and fuel Meanwhile Russia's promises of development go mainly unfulfilled JATIBONICO (Cuba), July 2 — Hours over rutted roads inland from Havana, the small Cuban city of Jatibonico is a snapshot of late 19th-century living, its streets crowded with horse-drawn carriages and lacking power much of the day and night. The town's decrepit sugar mill — once the country's largest — sits idle, lacking the parts, electricity, and fuel it needs to operate. Two years ago, a Russian company, Progress Agro, announced it would import machinery, fertiliser, and know-how to revitalise the mill, which once employed 2,000 people. 'When are the (Russians) coming? That's all anybody talks about,' said Carlos Tirado Pino, 58, a mill maintenance worker among the few to retain his post. A train passes by the 'Uruguay' sugar mill in Jatibonico, Cuba May 21, 2025. — Reuters pic Meanwhile, just outside town and out of sight, three bulldozers clear an abandoned cane field to prepare for the installation of a Chinese-financed solar park that will deliver 21 MW of electricity — one of 55 similarly sized such solar parks underwritten by China across Cuba this year. Cuba is in desperate need of help. Shortages of food, fuel and medicine, gruelling hours-long blackouts and plunging tourism and exports — combined with renewed US sanctions under the second Trump administration — have devastated its economy. A Reuters review of various sites on the ground suggests that where many of Russia's most recent promises have fizzled, China has discreetly stepped up to fill the void, pushing ahead with a number of critically-timed projects aimed at helping Cuba salvage its economy. Cuba joined China's Belt and Road Initiative in 2018, and China has since invested in several strategic infrastructure projects on the island, including major projects in transportation, port infrastructure and telecoms, while Russia, mired in a war in Ukraine and leery of lending more money to crisis-racked Cuba, has faded as a historic partner. 'Russia's promises have always been bigger than its performance,' said William LeoGrande, a professor of Latin American politics at American University. 'If China is now stepping up its assistance in light of Cuba's desperate conditions, that could prove to be a real lifeline.' Neither the Russian nor Chinese embassies in Havana responded to a request for comment. A Chinese company drills oil in Mayabeque, Cuba June 2, 2025. — Reuters pic China delivers The solar park project positions China as a pivotal partner for Cuba at a time of nearly unprecedented crisis: the country's national grid has collapsed four times in the past year alone, leaving millions in the dark and shuttering schools and businesses. On February 21, Cuba inaugurated a solar park in Cotorro, outside the capital, in a ceremony that included China's ambassador to Havana, Hua Xin and Cuban President Miguel Diaz-Canel, who lauded the project in a statement as a 'collaboration from our sister Republic China.' The fine print of the agreements between Russia and China and longtime ally Cuba remain largely confidential, making it difficult to discern how either country operates in Cuba, through private companies or via public financing and how the Cuban government might be repaying them. Since then, at least another eight have come online, according to grid operator UNE, churning out nearly 400 MW of sun-fuelled energy together with existing parks — about a third of the mid-day deficit. New Chinese-funded projects alone are expected to push that figure over 1,100 MW by the end of the year, according to official estimates, nearly covering the daytime shortfall and saving Cuba precious fuel to burn at night. Officials at the February event announced China was participating in a project to modernise Cuba's entire electrical grid, with 55 solar parks to be built in 2025, and another 37 by 2028, for a total of 2,000 MW — a massive undertaking that, when complete, would represent nearly two-thirds of present-day demand. The port of Mariel — Cuba's main shipping centre just west of Havana — saw traffic from China begin to tick up in August of 2024, according to shipping data and two foreign businessmen who declined to give their names for this story. Ships arriving last year from Shanghai, Tianjin and other prominent Chinese ports carried solar panels, steel, tools and parts. The 'kits' came complete with fuel for overland transport to assure the panels would make it to their destinations, the sources said. The arrival of Chinese ships is being felt across the Cuban countryside, as tractor trailers with Chinese markings rumble across pot-holed roads to reach far-flung destinations like Jatibonico. Truck driver Noel Gonzalez, who on a recent morning delivered a load of gravel fill to the solar park site on the city's outskirts, said he was both amazed and grateful for the Chinese diligence. 'The Chinese (workers) come and periodically check every litre of petroleum, every route we take,' Gonzalez said. Fulton Armstrong, a former US National Intelligence Officer for Latin America, called China's investments a 'big benefit' but warned they won't be enough to overcome the Trump administration's renewed sanctions on the island. 'Havana can't bank on either Russia or China coming in with magic pills,' he said. 'Only massive amounts of Chinese trade and assistance could pull the island through — and that just doesn't seem plausible.' China's strategic investments in Cuba coincide with US accusations that China is installing 'spy bases' on the nearby Caribbean Island, though Cuba and China have denied the allegations. Tourists from Russia sunbath on the beach in Varadero, Cuba June 2, 2025. Russia, like China, has promoted tourism to the island, offering a bump in foreign visitors and much-needed foreign exchange. — Reuters pic Russian roulette Two years ago, as Cuba's economy was still reeling from the Covid-19 pandemic and US sanctions, Russia too was ready to lend a hand. In May 2023, Russian Deputy Prime Minister Dmitry Chernyshenko arrived in Cuba for a ribbon-cutting ceremony that marked the reopening of the island's largest steel mill, a project made possible thanks to US$100 million (RM419 million) in Russian financing, Cuban state-run media reported. Chernyshenko called the mill's reopening a 'fine example of Russian-Cuban cooperation.' The mill's plant director, Reinier Guillén, promised output of steel bars from the facility would soar to 62,000 metric tonnes in 2024. But Russia's investment did not translate into production. Cuba's statistics agency ONEI reported in April that the island had churned out just 4,200 metric tonnes of steel bars in 2024. On a recent weekday morning, the mill was quiet. A prominent smoke stack was idle, and no activity could be seen within the plant. Esperanza Perez, a lifelong local resident who works at a small bakery in a ramshackle development of shanties and crudely-built homes, many without electricity or water, said the mill had sat idle for months. 'Talk is cheap. When (the mill) is running, we hear the noise, see the workers, but I haven't seen any sign that it is operating,' said the 37-year-old Perez. 'We've seen no benefits here.' Cuba's government did not reply to a request for comment on the discrepancy in output. But fuel and electricity generation shortages have affected industry across the island, crippling production. The day after the ribbon-cutting at the steel mill, Chernyshenko appeared with Diaz-Canel to sign at least eight agreements between Cuban state agencies and Russian state and private companies, according to a document obtained by Reuters summarising those deals. The wide-ranging agreements included a deal to guarantee Cuba a supply of wheat for bread making, the opening of a well-stocked 'Rusmarket' in Havana, the restoration of historic architecture in the capital's historic district and cooperation in artificial intelligence. There was even a bold plan to rebuild the crumbling Tarara residential beach community, whose coveted white sands and palm-fringed waterfront just minutes from Havana have been largely off-limits to foreign capital since 1959. But on a recent visit, most of the homes at Tarara appeared abandoned or in disrepair, with only a small number near the beach refurbished and no sign of Russian investment. At the community marina, a single boat, its bottom covered with slime, swayed at the dock, the harbour's entrance blocked by sediments and its waters stagnant. Plans to open the Rusmarket — initially celebrated as a foot in the door for Russian vendors and products — have been delayed for two years. The nearby Yumuri department store, where Russian investors planned to open a bigger shop in June or July stocked with everything from Russian auto parts to canned trout and children's toys, also appeared largely abandoned. A Russian agreement to restore the 19th century Santo Angel building in Havana's historic Plaza Vieja, in a nod to Cuba's rich architectural history, also appeared stalled. Reuters was unable to make contact with CGC Investments, the Russian firm that had inked many of the 2023 deals. Neither the Russian embassy nor its Foreign Ministry responded to a request for comment. Chinese tourists arrive at the Jose Marti International Airport in Havana, Cuba June 14, 2025. — Reuters pic To be sure, some of Russia's promised aid has come through. Russian state-backed companies have supplied cargos by sea of both wheat and oil to the island. And Russia, like China, has promoted tourism to the island, offering a bump in foreign visitors and much-needed foreign exchange. In May, two years after the 2023 flurry of announcements, Russia's Chernyshenko announced a plan to subsidise interest rates for businesses interested in investing as much as US$1 billion on the island, calling Cuba a 'reliable partner.' 'There's still a lot of hard work to be done, we'll advance little by little,' Chernyshenko told reporters in Moscow, adding that 'it is impossible to achieve things immediately, as if by magic.' — Reuters
Malay Mail
21-06-2025
- Business
- Malay Mail
Too old to work, too poor to eat — how Cuba's older adults are paying the price of crisis
HAVANA, June 21 — With a monthly pension barely sufficient to buy 15 eggs or a small bag of rice, Cuba's elderly struggle to make ends meet in one of Latin America's poorest and fastest-aging countries. As the communist island battles its deepest economic crisis in three decades, the state is finding it increasingly hard to care for some 2.4 million inhabitants – more than a quarter of the population – aged 60 and over. Sixty is the age at which women – for men it's 65 – qualify for the state pension which starts at 1,528 Cuban pesos per month. This is less than US$13 (RM55) at the official exchange rate and a mere US$4 on the informal street market where most Cubans do their shopping. 'Fight for life, for death is certain,' vendor Isidro Manuet, 73, told AFP sitting on a sidewalk in the heart of Havana, his skin battered by years in the sun, several of his front teeth missing. 'I manage to live, survive, nothing more,' he said of his meager income that allows him to buy a little food, and not much else. As he spoke to AFP, Manuet looked on as small groups of people walked by his stall carrying bags full of food. They were coming out of Casalinda, one of several part government-run megastores that sells goods exclusively to holders of US dollars – a small minority of Cubans. Most rely instead on informal stalls such as the ones Manuet and other elderly Cubans set up on sidewalks every morning to sell fruit, coffee, cigarettes, candy, used clothes and other second-hand goods. 'Things are bad' Near Manuet's stall, 70-year-old Antonia Diez sells clothing and makeup. 'Things are bad, really bad,' she sighs, shaking her head. An older adult woman walks in a street of Havana, on June 3, 2025. — AFP Many of Cuba's elderly have been without family support since 2022, when the biggest migratory exodus in the country's history began amid a crisis marked by food, fuel and medicine shortages, power blackouts and rampant inflation. More beggars can be seen on Havana's streets – though there are no official figures – and every now and then an elderly person can be spotted rummaging through garbage bins for something to eat, or sell. The Cuban crisis, which Havana blames on decades of US sanctions but analysts say was fueled by government economic mismanagement and tourism tanking under the Covid-19 pandemic, has affected the public purse too, with cuts in welfare spending. As a result, the government has struggled to buy enough of the staples it has made available for decades to impoverished Cubans at heavily subsidized prices under the 'libreta' ration book system. It is the only way many people have to access affordable staples such as rice, sugar and beans – when there is any. Diez said she used to receive an occasional state-sponsored food package, 'but it's been a while since they've sent anything.' 'No future' This all means that many products can only be found at 'dollar stores' such as Casalinda, or private markets where most people cannot afford to shop. According to the University of Havana's Center for Cuban Economic Studies, in 2023 a Cuban family of three would have needed 12 to 14 times the average minimum monthly salary of 2,100 pesos (RM72) to meet their basic food needs. An older adult woman reads the menu at a community food center, part of the Family Attention System (SAF), in Havana, on May 26, 2025. — AFP Official figures show about 68,000 Cubans over 60 rely on soup kitchens run by the state Family Assistance System for one warm meal per day. At one such facility, 'Las Margaritas,' a plate of food costs about 13 pesos (11 dollar cents). Pensioner Eva Suarez, 78, has been going there daily for 18 months. 'The country is in such need. There's no food, there's nothing,' she told AFP, adding her pension is basically worthless 'because everything is so expensive.' Inflation rose by 190 per cent between 2018 and 2023, but pensions have not kept pace. Some are losing faith in communism, brought to the island by Fidel Castro's revolution, and its unfulfilled promises such as a litre of subsidised milk for every child under seven per day. 'I have nothing, my house is falling apart,' said Lucy Perez, a 72-year-old economist who retired with 1,600 pesos (about 13 dollars) a month after a 36-year career. 'The situation is dire. The nation has no future.' It's not just the elderly suffering. Cuba was rocked by unprecedented anti-government protests in 2021, and students have been rebelling in recent months due to a steep hike in the cost of mobile internet – which only arrived on the island seven years ago. In January, the government announced a partial dollarisation of the economy that has angered many unable to lay their hands on greenbacks. — AFP
The Guardian
30-05-2025
- Business
- The Guardian
Over a barrel: lack of sugar throws Cuba's rum industry into crisis
It's a crisis that would have sent a shiver down Ernest Hemingway's drinking arm. Cuba's communist government is struggling to process enough sugar to make the rum for his beloved mojitos and daiquiris. As summer rains bring the Caribbean island's 2025 harvest to an end, a recent analysis by Reuters suggests that Cuba's state-run monopoly, Azcuba, is likely to produce just 165,000 metric tonnes of sugar this year. That compares with harvests of 8m in the late 1980s. Michael Bustamante, chair of Cuban and Cuban-American Studies at the University of Miami, described the situation as 'dismal'. 'You have to go back to the 19th century to find numbers this low,' he said. Cuba is in the grip of an all-encompassing economic crisis, and for the past few years has been importing sugar to feed its people, but rum producers do not have the luxury of importing. 'The regulations provide that all the liquids have to come from within the country,' an industry executive said, speaking anonymously. It is particularly worrying because the island's rum industry has been a rare bright spot in its economy. Big international luxury brands are involved, battling each other in world markets with distinctive Cuban spirits. Diageo, LVMH and Pernod Ricard all have ventures with the government in Havana, often involving tortuous legal structures to placate OFAC, the US Office of Foreign Assets Control, which polices Washington's six-decade-plus trade embargo against the island. These companies – and a small British/Norwegian upstart called the Island Rum Company – have invested heavily in their respective brands: Ron Santiago, Eminente, Havana Club and Black Tears. Now there are concerns about their prospects. 'It is threatened,' said the executive. Rum as we know it was invented in Cuba in 1862 when a shopkeeper in the coastal city of Santiago thought he could do better than the rot gut then produced in pot stills on the country's plantations worked by enslaved people. His name was Facundo Bacardí. He began using column stills to distill molasses, a byproduct of sugar refining, selecting the aguardiente liquor on the edge of the pure alcohol, before ageing it in oak. His family, and the rum they produced, became the most famous in Cuba, until they were forced out in the Castro brothers' 1959 revolution. The Castros wanted Cuba to be financially independent of other countries, a never-ending issue for the island, and sugar was at the heart of their plans. In 1970, they mobilised 500,000 volunteers to create a 10m-tonne harvest. The effort fell short, but at least until the late 1980s Cuba produced around 8m tonnes a year. There was always a lack of investment in the machinery, though, which the government blames on the US embargo. Now the 133 mills at the time of the revolution have been reduced to 14, and only six are reportedly still operating. 'The sugar production numbers have been steadily decreasing for the better part of 20 years, but particularly over the last five,' said Bustamante. 'I think it's just as clear a signal as you can get over the dire straits of the economy overall.' The Enrique Varona sugar mill is in the settlement of Falla, around halfway along the island's length. On a recent visit, the workers looked exhausted as they lathed a heavy bit of metal in the hope of keeping the great mill running. In contrast, Pernod Ricard's distillery south of Havana is modern and slick. The French drinks company was the first of the big foreign operations to arrive, doing a deal with Corporación Cuba Ron, the state producer, in 1993. In return for an agreement not to allow other competitors in for 20 years, it took over the Havana Club brand, building sales from 300,000 cases to over 4m. 'They made a huge investment in a moment in which no one had the guts to invest in Cuba,' said Luca Cesarano, who until recently ran the rival brand of Ron Santiago. With the end of that agreement in 2013, others such as Diageo arrived. Unlike Pernod Ricard, they were not distilling themselves, but employing rum makers – known as maestros – to make specific spirits in Cuba's state distilleries. They were also using historic collections of rum that the maestros had for years been storing in oak barrels across the country, even as the roofs of their bodegas grew full of holes. These high-end products have fed an international resurgence in rum. LVMH, the luxury powerhouse, arrived to make Eminente, creating the Hotel Eminente in Paris to promote it. The upstart Island Rum Company has found a strong following in Cuba and abroad by associating itself with young Cuban musicians (its Black Tears brand takes its name from a Cuban song, Lagrimas Negras. But with the supply of molasses drying up, all this work is threatened. 'I think the fourth quarter will be particularly tough,' said the executive. 'There won't be any alcohol.'
