Finance

Crisis-stricken Cuba torn between ally Russia, neighbor U.S.

FILE - The Ramos family cooks dinner over a fire outside their storm-damaged home a week after Hurricane Ian knocked out electricity to the entire island, in La Coloma, Pinar del Rio province, Cuba, Oct. 5, 2022. Cuba's energy crisis has once again t

HAVANA — When Hurricane Ian tore through western Cuba in late September, causing an island-wide blackout, it left the government grappling with a deepening energy crisis and simmering discontent among Cubans.

It also once again thrust the Caribbean island into the middle of an escalating tug-of-war between its seaside neighbor, the United States, and ally, Russia.

At a time when Cuba is urging the Biden administration to ease U.S. sanctions that it says stifle hurricane recovery efforts, Russian oil has flooded into the island, providing relief to debilitating blackouts.

Russia has shipped an estimated $352 million in oil to Cuba since the start of the Ukraine war, the biggest inflow from Russia this century and enough to cover about half the shortfall in the island’s supplies, according to independent estimates. The sales also potentially alleviated the weight of international sanctions on Russia for its invasion of Ukraine.

In an increasingly complex geopolitical situation, the island nation has been left with its hands tied.

“(It leaves them) between a rock and a hard place,” said Richard LeoGrande, a professor at American University who has tracked Cuba for years. “Cuba can’t afford to alienate either side in what is shaping up to be a new Cold War.”

But this time, 60 years after the Cuban Missile Crisis, Cuba’s tough spot lies not in nuclear weapons, but rather its deepening energy crisis.

Cuba has depended on foreign oil as its primary energy source for decades.

Until the fall of the Soviet Union in 1991, the Soviets sold Cuba oil well below market price. Later, Cuba hatched a similar deal with socialist ally Venezuela at the height of its oil boom, sending Cuban medics in exchange for discounted petroleum.

Since Venezuela has fallen into its own crisis, though, Cuba has been left short on both oil and a way to pay for it.

Despite speculation that Venezuela may be fronting part of the costs, Cuba’s Deputy Foreign Affairs Minister Carlos Cossío told The Associated Press in an interview Wednesday that “Cuba, of course, pays for the petroleum.”

“Cuba has to buy petroleum for the well-being of the economy, and it’s willing to buy it from whoever sells it to us,” Cossío said.

Meanwhile, key power plants slowly decayed over years of deferred maintenance. The Cuban government struggled to bolster its own energy sector and harness the island’s potential for solar and wind energy.

The lack of investment is something the Caribbean nation blames…

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