"It would be very serious for Cuba if the Venezuelan regime collapsed"

Radio France International News from America

February 25, 2019

The Cuban economist Mauricio de Miranda badyzes for RFI the dependence of the Cuban economy with respect to Venezuela and the fear in Cuba of the collapse of the Maduro regime. "In Venezuela, the dignity of the continent is at stake," Cuban President Miguel Díaz-Canel said after his vote in Sunday's referendum. The Cuban authorities launched a campaign in the networks for Caracas #ManosfueradeVenezuela.

>>> Click on the picture to listen to the interview

Cuba maintains its unconditional support for the Venezuelan regime whose oil has been vital to the economic survival of the island. "Cuba is heavily dependent on the supply of fuels, PDVSA is severely hit by mismanagement, because the Venezuelan government has decided that PDVSA will badume a series of functions that do not correspond to it in the Venezuelan economy and would incur costs they practically have this business broken", Says Mauricio de Miranda, professor of economics at Javeriana University in Cali, Colombia.

Besides oil, Cuba is worried about another aspect related to Caracas, the program of Cuban doctors' services in Venezuela "that guarantees Cuba's balance of payments," Miranda said. "What does the Venezuelan crisis mean for Cuba right now? Venezuela is struggling to pay and although he accumulates Venezuela's huge debt with Cuba and Cuba may think that these are services that will be paid at another time, the reality is that there is a lack of cash and that the economy can enter and already enters into liquidity problems that prevent it from obtaining imports essential to the functioning of the economy, "adds the economist.

A lot of nervousness in Cuba for the Venezuelan situation

For the Cuban government, the Venezuelan crisis is a fundamental concern, not only for the economy, but also for the threats of the United States. "It would be very serious if Maduro's regime collapsed," said Mauricio de Miranda, who said that if the Maduro diet collapses, it is not certain that the collapse of Cuba is yes, it would require deepening economic reforms.

Cuba looks for other sources of oil in Qatar and Algeria

Last week, Cuban Foreign Trade Minister Rodrigo Malmierca made an official visit to Qatar and Algeria to deepen relations with these two oil countries, signaling that Cuba is starting to diversify its crude oil supplies. "Algeria has already started supplying crude oil to Cuba to cover part of the oil shortage in Venezuela", Explains the economist at Javeriana University in Cali, Colombia.

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