Russia to help to create major transport hub in Cuba, Forgives Debt, in Major Latin American Development Push

This is actually a compilation of three important stories on Russia's activities in Latin America.

First story, Russia to help to create major transport hub in Cuba:

Russia, Cuba and possibly other countries will pool their efforts for creating a major transport hub in Cuba by upgrading the port of Mariel and building a modern international airport in San Antonio de los Banos, President Vladimir Putin said.

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"Our short-term prospects include the development of new oilfields in the Cuban offshore area. To these ends, Zarubezhneft and Rosneft engage in active cooperation with Cupet, Cuba's state oil company," Putin said, adding that INTER RAO was also planning to join the construction of power units for the Maximo Gomez and East Havana TPP. The supply of Russian electric power equipment to Cuba is well underway.

Putin noted that a substantial number of Russian companies - specialising, in particular, in the production of reinforced plastic goods, auto spare parts, tractor assembly and installation of heavy equipment for the railway industry - had shown interest in closer cooperation due to the development of the Mariel special economic zone in Cuba.

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The second story goes more into the debt forgiveness aspect:

Russia has written down $32 billion of Cuba's Soviet era debt. Russian President Vladimir Putin signed the law ahead of his official visit to Latin America, with Havana as his first stop.

The agreement was first signed in October 2013 and draws a line under a twenty-year dispute.

Cuba is now required to pay back $3.2 billion over the next 10 years.

Also note:

The tour will culminate with the BRICS summit, where the final bricks of a joint development bank will be laid. The new financial body that'll focus on infrastructure projects will have a $100 billion budget, and could represent a solid attempt by developing economies to become less dependent on loans from such international organizations as the International Monetary Fund and the World Bank.

And here's the final one, Russia ready to cooperate with all Latin American associations, which is more of a fluffy overview of Russia's overture to Latin America:

"In this region, the traditions of love of freedom and respect for other nations and cultures are strong, and there are practically no serious intergovernmental conflicts or the wish to pursue the divide and rule policy. On the contrary, nations in the region are ready for joint action to protect their shared Latin American home," Putin said in an exclusive interview to the Latin American news agency Prensa Latina ahead of his South American tour, during which he will visit Cuba, Argentina and Brazil.

But note

Putin said that the establishment of contacts between CELAC and the countries taking part in the Customs Union and Common Economic Space would open up many new opportunities. "Russia, Belarus and Kazakhstan are deepening the integration process. In May, we signed the Agreement on Establishing the Eurasian Economic Union, which will come into force on January 1, 2015," he said.

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He reaffirmed that Russia is open to substantive interaction with all integration formations in the Latin American region. That includes the Union of South American Nations (UNASUR), the Common Market of the South (MERCOSUR), the Bolivarian Alliance for the Peoples of Our America (ALBA), the Pacific Alliance, the Central American Integration System (SICA) and the Caribbean Community (CARICOM).

So there seems to be some substantial talk about bridging between Russia's burgeoning Eurasian economic union, and Latin and Carribean states (though it isn't clear that the latter is terribly "integrated" ... yet).

BONUS ANALYSIS: Jim Willie (www.goldenjackass.com), who follows these things even closer than we do, has kindly allowed his advance-circulated comments on these developments to be published for 'Implode readers:

â—„$$$ A MAJOR CHESS MOVE IS IN PROGRESS IN THE UNITED STATES BACK YARD... RUSSIA TO SPONSOR THE CREATION OF A MAJOR TRANSPORT HUB IN CUBA, IN AN INFRASTRUCTURE UPGRADE, COMBINED WITH A MASSIVE DEBT FORGIVENESS... THE HINT OF A BRICS ASSOCIATE NATION BEING ADOPTED IS CLEAR... A LATIN AMERICAN STRATEGY IS UNFOLDING, WHICH INCLUDES LIFTING ARGENTINA, A PERENNIAL NEW YORK EXPLOITED GROUND, AND GIVING ADDED THRUST TO BRAZIL WHICH LANGUISHES... PUTIN IS UNFOLDING AND PRESENTING HIS AMERICAN HEMISPHERE TRADE ZONE, WITH A DEVELOPMENT TABLE, WHICH WILL IN TIME EXTEND TO THE EURASIAN TRADE ZONE IN A MAJOR CHESS MOVE IN THE BACK YARD OF THE FASCIST AXIS. $$$

Russia, Cuba and possibly other countries will pool resources for creating a major transport hub in Cuba by upgrading the port of Mariel and building a modern international airport in San Antonio de los Banos, along with a major cargo facility. Russian President Vladimir Putin gave an exclusive interview to the Latin American news agency Prensa Latina ahead of his South American tour. The itinerary is for visits to Cuba, Argentina, and Brazil. The lead item is $31.5 billion in debt forgiveness. Cuba pledged to spend $3.5bn on a raft of significant investment projects, which Russia will select and negotiate together with the Cuban side. The debt extends from the old Soviet era. The step is unprecedented, and testifies to the strategic nature of their bilateral relations, in his words. Imagine a foreign nation setting foot on United States soil to forgive 90% of its $17 trillion debt. An Intergovernmental Agreement was signed in October 2013, in its final stage of ratification. A multi-national commission was created, which must go beyond the intensely corrupt Fidel cabal clan in order to be effective. The commission has met 12 times already, around business councils as well and the Havana Trade Fair.

As for details, the projects are aimed at social and economic development of the bereft poverty stricken nation, a failure of crony communism. The average wage in Cuba several years ago was $25 to $30 per month (not per day). Offshore energy projects are in store, progress already made. Zarubezhneft started drilling the first development well in the Boca de Jaruco oilfield in August 2013. Putin is actively promoting the projects, stating "Our short-term prospects include the development of new oilfields in the Cuban offshore area. To these ends, Zarubezhneft and Rosneft engage in active cooperation with Cupet, Cuba's state oil company." The construction of power units for the Maximo Gomez site and in East Havana is underway, with supply of Russian electric power equipment... As for verification on the ground, a Hat Trick Letter subscriber reported, "I was at a cocktail party last night with a guy who just returned from the area. Major construction was already underway, in a big way." ... It seems like Cuba will become a BRICS Associate nation, an adopted basket case to become a showcase.

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The Putin Global Order centers on trade, development, and cooperation. He cited the goal of a strong, economically stable, politically independent, united Latin America to fit into the emerging polycentric world order... Notice the theme to counter the spread of fascism by the USGovt, the divide & control used by US teams, the constant destabilization of economies used to impose banker controls, the regular interference by WashingtonDC. King Vladimir has taken aim at the US hegemony in Latin America directly, working to organize the continent. Possibly it will join as extension to the Eurasian Trade Zone... Talk of contact with the Russian Customs Union was made. He reaffirmed that Russia is open to substantive interaction with all trade groups in the Latin American region... Argentina, the once thriving nation, now a socialist ruin. Look for Argentina to receive even more important extended hand in aid, development, and revitalization... The Jackass believes the Eurasian Trade Zone refers to its inception, but the zone will become a global trade zone which excludes the United States.