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Focus: Unprecedented Cuban oil crisis, supported by Russia and Venezuela

2019-10-15T03:47:23.862Z


[Havana / Mexico City 4th Reuters]-With the arrival of many tankers from Venezuela, Cuba's serious fuel shortages due to sanctions in the United States took a break. Russian Prime Minister who visited Cuba on the 4th


[Havana / Mexico City 4th Reuters]-With the arrival of many tankers from Venezuela, Cuba's serious fuel shortages due to sanctions in the United States took a break. The Russian prime minister who visited Cuba on the 4th promised to support the development of the energy industry.

However, even with the support from both the closest ally, Venezuela and Russia, the prospects for the resolution of Cuba's energy problem are dark. The Cuban government has introduced various energy-saving measures in the past month, but many of them have continued.

On September 11, the Cuban government issued a warning that the supply of refined fuel such as gasoline and diesel could not be secured until the end of the month. This is because the Trump administration has strengthened sanctions against Cuba in retaliation for Cuba's support for Venezuelan President Maduro.

In response to the fuel shortage, Cuba immediately strengthened energy-saving measures. These measures were introduced in response to a sharp decline in energy imports following the economic crisis in Venezuela, a major supplier.

Last month, the Cuban authorities called for reducing public transport operations, cutting production at some factories, pulling carts to livestock as a means of transport, and expanding the use of wood-burning stoves.

Allied Venezuela, on the other hand, has increased oil exports to Cuba, despite problems with its oil production and restrictions imposed by sanctions.

According to data from the information company Refinitive and internal data from the Venezuelan National Petroleum Corporation PDVSA, since late September, approximately 3.83 million barrels of crude oil and fuel oil have been shipped from Venezuela by at least eight tankers. Up to the first half of September, it increased sharply compared to 5 tankers and 1.9 million barrels.

Thanks to that, the situation in Cuba where gasoline cannot be refueled without queuing for hours has been resolved. However, light oil continues to be in short supply.

Rail and bus operations are expected to increase, but according to the Cuban transport authorities, they will recover the amount they saved in the last month and will not return to “normal operation”.

Dr. Diaskanel, the National Council of Councilors, sent an article entitled “No Fear of the Current Juncture” to the Communist Party newspaper, “Granma,” and Cuba avoided a major blackout in September. Praised.

Russian Prime Minister Medvedev, who made an official visit to Cuba for two days until the 4th, also sent a signal that Cuba was not isolated.

On the 4th, Medvedev visited the Boca de Harco oil field, which is being developed by state-owned companies in both Russia and Cuba in northern Cuba. Russian state news agency Sputnik reported that the Russian side has planned to invest 100 million euros in two years to drill 30 wells in the oil field.

A senior Russian government official told Tas Communications that they are working together to reduce Cuba's dependence on energy imports through cooperation on improving energy efficiency and oil development.

However, during the visit to Cuba, Prime Minister Medvedev did not announce any short-term support measures for the country.

<Fear of energy shortage>

Cuban oil self-sufficiency is estimated to be around 40%. In the last few years, almost all of the rest has been supplied by Venezuela in exchange for Cuba providing medical services. Some are also imported from allies such as Algeria and Russia.

But analysts say that Venezuela and Cuba will struggle with increasingly severe US sanctions.

Venezuela's PDVSA has recently exported oil to Cuba using an old-fashioned ship that has not been in the open ocean for a long time. It seems that it is difficult to charter tankers due to sanctions.

"The situation is getting harder," says Francisco Monardi, who studies Latin American energy issues at Rice University. According to the sanctions, many companies are trying to avoid dealing with Venezuela.

Some analysts see the Prime Minister Medvedev's visit to Cuba as a consultation with Venezuela on helping Cuba escape the energy crisis.

Recently, high-level traffic is frequently seen among Russia, Venezuela and Cuba. Recently, Venezuelan Vice President Rodriguez visited Moscow and then Havana.

“But considering the economic situation, I wonder how much Russia can offer,” said Jason Marzak of the Adrian Arsht Latin America Center.

According to an announcement by the Russian government, Tas reported that the supply of petroleum products from Russia to Cuba increased approximately four times in the first half of this year. However, details have not been disclosed, and the shipment volume in the second half, when the Trump administration intensified pressure, has not been reported.

In Cuba, the nation's hardship continues.

According to Newlis Hiheras, who runs a restaurant called “Atelier” in Havana, authorities gathered company owners and asked them to reduce electricity consumption by up to 50%.

“Air conditioners and electric ovens are almost gone,” she says.

Government offices have stopped using electricity for several hours during the day. Because computers are not available, staff members leave the office (not air-conditioned) to work on paperwork or escape the heat of the Caribbean.

Some civil servants were ordered to wait at home without pay cuts. There are no instructions for returning to work. In some movie theaters in Havana, the number of screenings has been reduced from 2-3 to 1 per day.

Yolanda Santana, who works as a cleaner at one of the cinemas, “Cine Yarra,” says, “Our lack of oil caused us to stop screening comedy at night.” “I have no idea when the situation will improve”

(Translation: Eklaren)

Source: asahi

All news articles on 2019-10-15

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