Cuba Joins BRICS New Development Bank.

Cuba has become a member of the BRICS New Development Bank (NDB) and is expected to obtain access to alternative financing, as the NDB offers credit without the strict conditions of institutions such as the IMF or the World Bank. Cuba has limited access to the dollar-dominated global financial system and is heavily sanctioned by the United States.

Membership may also result in a reduction of dependence in Cuba on the U.S. dollar as the BRICS promotes the use of local currencies and alternative payment systems, which would help Cuba avoid extraterritorial sanctions. The move is both pragmatic, offering new sources of credit, investment, and technology, and highly political, signalling a shift away from dependence on Western markets and norms.

Cuba has also offered to host an industrial park for the Eurasian Economic Union (EAEU) within the Mariel SEZ. This proposed 50-hectare site would be leased to the EAEU for 50 years, with an option to extend. The park would allow EAEU members to localize production, invest directly, and expand access to Latin American markets. The EAEU includes Russia as well as Armenia, Belarus, Kazakhstan, and Kyrgyzstan. Iran, Serbia, and Vietnam also have free trade agreements with the EAEU, while Indonesia and Mongolia are about to follow suit. Cuba is an official observer to the EAEU and is also a BRICS partner nation.

Currently, the volume of bilateral trade between Moscow and Havana is about US$250 million per year. Cuba has the status of an observer state at the EAEU. According to 2023 data, the trade turnover of the EAEU with Cuba amounted to US$290 million.

Source: Russiaspivottoasia