Russia-Cuba heading for a major oil agreement


Rosneft-Cuba meeting comes soon after a Rosneft-Venezuela meeting. Picture shows: Head of Russian state oil firm Rosneft Igor Sechin (standing L) shaking hands with Venezuela's Oil Minister and President of the Venezuelan state oil company PDVSA Manuel Quevedo, in front of Venezuela's President Nicolas Maduro, in Maiquetia, Venezuela December 16, 2017. - Reuters

HAVANA: Cuban President Raul Castro and the head of Russian oil company Rosneft met in Havana on Saturday, the latest sign the two countries are readying a major energy agreement.

State-controlled media on Sunday ran a photograph of Castro and Igor Sechin sitting with notebooks at a table with Economy Minister Ricardo Cabrisas, after the latter two had held what was termed in a brief caption "a working meeting".

Castro usually appears with visitors only in protocol photographs. There was no further information.

Castro and Sechin have known each other for decades.

Cuba struggled with blackouts and fuel shortages after the fall of its benefactor, the Soviet Union. The rise of Hugo Chavez, Venezuela's late president, ended that crisis at the turn of the century, and Cuba came to rely on Venezuela for about 70 percent of its fuel needs.

But socialist Venezuela’s subsidized shipments have fallen by at least 40 percent since 2014. Cuba is looking for new suppliers to help mitigate electricity and fuel rationing to state companies.

Rosneft, Russia's state-run oil company, began shipping some fuel in May to Cuba even as the United States under Donald Trump began reversing a fragile detente begun by former U.S. President Barack Obama. They were the first significant Russian fuel deliveries since the early 1990s.

Rosneft, in October, said it was considering increasing oil shipments to Cuba and improving refining capacity on the island after Sechin met with Cuban Energy Minister Alfedo Lopez in Moscow.

According to Jorge Pinon, an oil expert at the University of Texas at Austin, the Cuba deal this year was equivalent to around 1,865,000 barrels and valued at $105 million at current prices.

In comparison, Russia reported it shipped oil products to Cuba from 2010 through 2015 valued at $11.3 million.

Cuba consumes 140,000 barrels per day of oil products. - Reuters

Get 20% OFF The Star Digital Access

Monthly Plan

RM 13.90/month

RM 11.12/month

Billed as RM 11.12 for the 1st month, RM 13.90 thereafter.

Best Value

Annual Plan

RM 12.33/month

RM 9.87/month

Billed as RM 118.40 for the 1st year, RM 148 thereafter.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!
Cuba , Rosneft , Venezuela , oil , meeting , price ,

Next In Business News

AI and wage power�
Margin squeeze looms for Press Metal
Lula returns, markets brace for reality check
Palantir’s US$170 jacket shows S. Korea appeal
Musk’s SpaceX closes US$40bil deal in AI push�
Hung Yen unveils zones, corridors in city status aim
Bright outlook for Sunway
AI boom set to continue
Boycott calls yet to dent Oriental Kopi sales
Singapore minister sees limited impact from Indonesia gas supply cuts

Air Pollutant Index

Note: API is calculated based on 24hr running average of the most dominant parameter.

Highest API Readings

    Select State and Location to view the latest API reading

    Others Also Read