Russia leases planes to Cuba, writes off Soviet debt
February 22, 2013 2:35 PM EST
Russia will lease eight jets worth $650 million (426 million pounds) to its Cold War- era ally Cuba and will partially write off the country's multi-billion-dollar, Soviet-era debt under agreements signed during Prime Minister Dmitry Medvedev's visit to Havana on Thursday.
Moscow will write off part of the $30 billion debt and will offer a 10-year refinancing plan for the remaining amount, according to the preliminary agreement, Russia's industry and trade minister Denis Manturov told reporters on the sidelines of the talks.
"There was an accumulated debt on loans allocated by the Soviet Union and we have now prepared an agreement that should undergo all the necessary procedures," he said.
Manturov said the final decision on debt settlement will be signed by the end of the year.
Russia will also lease three Ilyushin-96-400 long-haul jets, three AN-158 regional planes and two TU-204SM mid-range aircraft to Cuba under the agreements inked in the presence of Medvedev and Cuban leader Raul Castro.
Moscow will provide sovereign guarantees to a syndicate of Russian banks financing the deal, Manturov said.
Medvedev and Castro were seen chatting informally and broadly smiling during the ceremony. The Cuban leader greeted reporters in Russian.
Russia and Cuba enjoyed close relations during the Cold War between the Soviet Union and Washington.
The volume of trade between the two countries last year was roughly $200 million. Oil companies from Russia, the world's largest energy exporter, are drilling into Cuba's offshore oil deposits.
(Reporting By Alexei Anishchuk; Editing by Stacey Joyce)
Most Popular Slideshows
- Derek Jeter With The New York Yankees Through The Years [IN PICTURES]
- George Clooney And Amal Alamuddin's Wedding In Venice: Photos Of Groom And His Family, Friends [Slideshow]
- NFL Recap - Week 4: Green Bay Packers 38, Chicago Bears 17 [PHOTOS]
- Melanoma Could Be Caused By Ageing Genes; Best Diet For Anti-Ageing; Celebrities Who Have Aged Gracefully
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Forget Nexus 6 Release Date, Android Phones Will Soon Showcase Pure Google Apps & Features
- Galaxy Note 4 Pre Order Starts in the US, Get Samsung Note Ahead of October 14 Release
- $249.99 Motorola Moto 360 Smartwatch's First Promo Out; 'Stone Leather' Replaces 'Gray Leather' - Available In BestBuy [Watch Video]
- BlackBerry Passport Sold Out As Preorders Reached 200,000
- iPhone 6 vs Moto G 2014: Motorola’s Budget Smartphone Takes On Apple’s Premium Smartphone
- iOS 8 And iOS 8.0.2 Security Flaw Revealed, Anyone Can Easily Bypass Touch ID And Passcode Security Features
- Australia Cracks Down On International Money Laundering Syndicate