SOVIET OIL SHORTFALL LEAVES MARK ON CUBA

The large and increasing shortfall in Soviet oil deliveries to Cuba has caused a huge jump in crime associated with speculation, swindling, and theft of motor fuel on the Caribbean island. The Cuban news agency reported on the trial of a group of 16 "criminals" who sold "at inflated prices" ration coupons for purchase of more than 1 million I. of gasoline in 1990. The prosecutor asked 12-15 year jail sentences for the three ringleaders.

April 29, 1991

2 min read

The large and increasing shortfall in Soviet oil deliveries to Cuba has caused a huge jump in crime associated with speculation, swindling, and theft of motor fuel on the Caribbean island.

The Cuban news agency reported on the trial of a group of 16 "criminals" who sold "at inflated prices" ration coupons for purchase of more than 1 million I. of gasoline in 1990. The prosecutor asked 12-15 year jail sentences for the three ringleaders.

Meanwhile, the Moscow magazine Novoye Vremya said Cuba will buy 10 million metric tons/year of Soviet oil instead of the average 13 million tons/year in 1986-1990 "and will pay not the discount price of 168 rubles/ton as before but the world market price in hard currency."

Cuba has been receiving far less than 13 million tons/year of oil directly from the U.S.S.R., with the remainder coming from third parties--mainly Mexico and Venezuela--under exchange deals with Moscow.

Recent direct Soviet oil deliveries to Cuba have almost stopped, and the U.S.S.R. says it will reduce its purchases of Cuban sugar. Political friction between the two countries has increased because of opposing votes in the United Nations regarding sanctions against Iraq.