Don't miss

Replay


LATEST SHOWS

THE INTERVIEW

Colombia peace deal will be ‘lasting’, FARC rebel leader tells FRANCE 24

Read more

EYE ON AFRICA

Ghanaian President Mahama concedes defeat to opposition leader Afuko-Addo

Read more

MEDIAWATCH

Trump's TV Career Continues

Read more

THE WORLD THIS WEEK

President Park Impeached, Ghana's High Stakes Election (part 1)

Read more

THE WORLD THIS WEEK

Aleppo Offensive, Renzi Resigns, Trump's Cards (part 2)

Read more

ENCORE!

South Korea: An inside look at the K-pop wave

Read more

#THE 51%

Diving back in: Offering support for French mothers returning to work

Read more

REPORTERS

Chaotic post-hurricane relief efforts in Haiti

Read more

PEOPLE & PROFIT

Cash crunch casualties: India's wedding industry suffers from currency changes

Read more

Business

Cuba and Russia sign first post-Soviet oil deal

Text by News Wires

Latest update : 2009-11-04

Cuba and Russia have signed an agreement to allow Russian state oil company Zarubezhneft to explore for and produce oil in Cuba in their first post-Soviet oil pact. Both countries have made a push to revive ties in recent months.

AFP - Cuba and Russia signed an agreement Monday to allow Russian state oil company Zarubezhneft to explore for and produce oil in Cuba in their first post-Soviet oil pact.
  
"The contracts that were signed are tremendously important for Russia and Cuba, since they will guarantee cooperation over the next 25 years," said Nikolai Brunich, a Zarubezhneft official after inking the deal with the head of Cuba's state oil company Cubapetroleo (CUPET), Fidel Rivero.
  
Cuban authorities announced in October 2008 that Cuba had crude reserves of 21 billion barrels -- more than double previous estimates.
  
A major Cuban oil find would be a tropical Cinderella story for the only communist country in the Americas.
  
An oil importer that relies heavily on oil-rich Venezuela for economic and political support, Cuba's communist regime would be able to sustain itself indefinitely if it were to become energy independent.
  
The country's centrally planned economy is frail, and its population of over 11 million is eager for economic progress after surviving dire economic hardship since 1990.
  
Zarubezhneft is among those eyeing Cuba's economic zone in the Gulf of Mexico.
  
At least seven foreign companies -- from Spain, India, Norway, Malaysia, Vietnam, Venezuela and Brazil -- are currently working in the zone under contract. US firms are sidelined by the US economic embargo on Cuba, in place since 1962.
  
Moscow was Havana's main sponsor in the Soviet era, but relations between the two countries stalled after the collapse of the former Soviet Union in 1991.
  
But both countries have made a push to revive ties in recent months with Russian President Dmitry Medvedev visiting Havana last year and Cuban President Raul Castro traveling to Moscow in January.

Date created : 2009-11-04

  • MARKETS

    Oil hits 12-month high of $79 a barrel

    Read more

  • TRADE

    Russia and China sign deals to tune of 3.5 billion dollars

    Read more

  • DIPLOMACY

    Russia, China to sign deals on missiles and high-speed trains

    Read more

COMMENT(S)