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CUBAN ECONOMY HURT BY SUSPENSION OF VENEZUELAN OIL SHIPMENTS UNDER 2000 AGREEMENT.

Article Excerpt
The April 11 coup against Venezuelan President Hugo Chavez (see NotiSur, 2002-04-19) has had serious consequences for Cuba as coup leaders abruptly stopped scheduled shipments of oil to Cuba. Shipments did not resume after the collapse of the short-lived coup regime.

Under an October 2000 agreement (Programa de Cooperacion Energetica), the Venezuelan state oil company Petroleos de Venezuela (PDVSA) was to ship 193 million barrels per year of crude and various derivatives for five years (see NotiCen, 2000-11-02). Cuba agreed to pay up to 75% in 90 days and the balance was to be financed over 15 years.

The agreement originally allowed Cuba to pay part of the bill in goods and services, exchanging medical, sports, and tourism services and agricultural products for part of the oil shipments.

The barter system was dropped in September 2001 and all exchanges were paid for in cash after that. Cuban authorities said the system was abandoned because it was too complicated.

Oil politics intervenes

Although the Venezuelan right and the Miami Cuban-exile leadership criticized the agreement as a corrupt alliance between two dictators, one supporting the other with cheap oil, the deal was not particularly unusual.

Venezuela and Mexico had been routinely supplying a dozen Central American and Caribbean countries--including Cuba--since 1980 under...

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