Russia’s agricultural exports to Cuba grew by 20.1% in value during 2024, according to Russia’s Deputy Agriculture Minister Maxim Titov and the Cuban Deputy Agriculture Minister Telse Abdel Gonzalez Morera, who have been discussing bilateral agricultural trade.
Agricultural trade between the two countries grew by 13.4%, meaning Russia’s exports to Cuba grew more than vice-versa.
However, moves are being made to provide a better bilateral balance, with the two countries continuing cooperation on veterinary and phytosanitary oversight. Cuba has accredited Russia’s system of state veterinary oversight of poultry meat, pork, beef and dairy products. Russia and Cuba are also cooperating on implementing electronic certification of controlled animal products and integrating information systems. Russia’s exports of livestock to Cuba have also increased.
Cuba became a BRICS partner state from January 1st this year which should also help its overall trade development position with other BRICS nations.
Cuba’s economy is diverse but heavily dependent on key industries. Agriculture remains important, with the country being a leading producer and exporter of tobacco, especially cigars, and having a strong sugar industry. However, the 2024 sugar harvest was the lowest since 1900, reaching only 71% of the target. Mining, particularly nickel and cobalt, is also vital, with the sector growing 8.87% in 2024, driven by increased production of molybdenum, silver, and copper. The energy sector, based on oil and gas, contributes significantly to revenue, although outdated infrastructure and reliance on imported oil give rise to frequent power outages. This has recently resulted in serious national blackouts, with a Cuban energy delegation visiting Moscow last month to discuss investment and resolutions.
Energy problems aside, Cuba is traditionally strong in biotechnology and pharmaceuticals, particularly in vaccine development and medical research. Tourism, once a key driver of GDP and employment, is recovering slowly due to the ongoing effects of the pandemic and economic challenges.
Cuba’s trade relationship with Russia has however shown significant growth in recent years. Bilateral trade rose from US$145.6 million in 2021 to US$452 million in 2022, while Russian exports to Cuba increased 8-fold in the first eight months of 2023. Current bilateral trade is estimated at about US$1 billion with the bulk of this Russian energy and fertilizer exports. The most pressing issue however is Cuba’s need to upgrade its energy sources. Delegations from both have been examining these issues in both Moscow and Havana already this year, with suitable developments and solutions likely to be prioritized.
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