RSS
Home
Cuba attempting to reduce dependency on cheap Venezuelan oil
Print
Email
RSS
Subscribe
An oil refinery in Cuba (Photo: AFP/Getty)
In a statement on Friday, a senior Cuban government official said Cuba is paying more for Venezuelan oil than it needs to in order to discourage dependency on one oil source, according to Reuters India.
Deputy Foreign Minister Rogelio Siera Diaz said Cuba chose to get oil under the more expensive “Caracas Accord” instead of through Venezuela's Petrocaribe group. “We decided to stay with the Caracas agreement so we would not become too dependent,” Siera said.
Cuba still receives most of its oil from Venezuela, which ships 93,000 barrels per day to help cover the island's daily demand of 150,000 barrels per day.
Because Cuba’s cash reserves and available credit are extremely limited, the government pays for part of its oil imports by sending thousands of doctors and other professionals to work in Venezuela. Siera aid Cuba has more than 40,000 people working there, including about 30,000 medical personnel.
The exact details of economic agreements between Cuba and Venezuela are highly confidential, although some experts claim Venezuela pays Cuba around $5 billion per year for its assistance.
Many critics of the Castro regime are angered by the export of Cuban doctors and professionals to Venezuela and elsewhere in Latin America, when so many Cubans receive sub-standard health care and the island’s infrastructure is crumbling.
Because of Cuba’s lack of access to cash and significant amounts of credit, paying for goods with Cuban services is often the only way the government can purchase goods in international markets.
RELATED ARTICLES:
"Cuba gets $445 million line of credit from Iran to expand economic ties"
.gif)
Related Articles:
Add a Comment
.jpg)
