Venezuela forced to reduce oil exports to Cuba

Venezuela forced to reduce oil exports to Cuba
Publish Monday, July 11, 2016 | By: Energía 16

Venezuela's financial woes have forced to country to reduce its crude
shipments to Cuba, risking the maintenance of a fifteen-year-old
assistance program and putting Cuban authorities on the edge, as the
island's economy heavily depends on the assistance received by its key ally.

In detail, Cuba has received around 53,500 oil barrels from Venezuelan
state-owned oil company PDVSA this year, a 40 percent decrease as
compared to the previous year, according to Reuters.

This sharp decline would explain why Cuba, which generates a large part
of its electricity through fuels, recently launched joint ventures and
encouraged several state-owned companies to reduce energy consumption.

In fact, in a speech before the Parliament Cuban president Raul Castro
recognized that the country's economy is facing a rough period. Its
economy grew 1 percent in the first half of the year, as compared to
last year's 4.7 percent.

"Rumors and forecasts of an imminent collapse of our economy, with a
return of the acute phase of the Special Period, have started to
appear," affirmed the ruler referring to the period following the fall
of the Soviet Union in which Cuba went through blackouts and food shortage.

For his part, Cuban minister of economy Marino Murillo informed that the
country will drastically cut its electricity consumption, imports, and
investments, and will reduce fuel consumption by 28 percent for the rest
of the year, in a series of measures aimed at facing the deterioration
of Cuba's economic perspectives.

"We planned to import $14.4 billion to support a 2 percent growth this
year, but with the adjustments we will spend $11.9 billion," affirmed
Murillo in his speech, which means the country will cut spending by 15
percent.

Source: Energía16 – Venezuela forced to reduce oil exports to Cuba -
http://www.energia16.com/news/venezuela-forced-to-reduce-oil-exports-to-cuba?lang=en