Russia Ratifies Accord to Write off 90 Percent of Cuba’s Debt

Havana, Cuba, Jul 7 (acn) – The Russian lower chamber of parliament, or State Duma, ratified on Friday its accord to write off 90 percent of the Cuban debt.

According to a report by Russia Today, Moscow agreed to write off 90 percent of the island’s 35. 2 billion debt to the former Soviet Union, while Havana will still have to pay off 10 percent, some 3.5 billion in a 10-year term.

The funds will be transferred to the account of Russia’s Vnesheconombank (VEB) in the National Bank of Cuba and used to finance the economy of the Caribbean island nation, which remains under the US economic blockade, the report explains.

The agreement was signed by the Russian and Cuban governments in late October 2013. The first payment is to be made in October this year and the last one in April 2024.

The ratification by the State Duma of the accord, comes in as the Kremlin announced that President Vladimir Putin will visit the island July 11 as part of a Latin American tour that also includes Argentina and Brazil.

Putin will participate at the Summit in Brasilia of the Summit of the BRICS Group, the five major emerging economies: Brazil, Russia, India, China and South Africa.