Havana defaulted thrice in debt payments to Russia but was not fined, audit reveals

The Cuban government failed on three occasions to pay the installments on the US$355 million credit deal it signed with Russia on Sept. 28, 2006, the Russian Federation's Audit Chamber revealed Thursday.
"Since the signing of the agreement," which grants Cuba credit against Russian goods and services, "the Cuban side has three times violated the payment terms," said an Audit Chamber press release, read in Moscow by auditor Viktor Semyonovich Kosourov. "However, access to the credit line was not halted and, as of June 1, 2009, interest penalties for late payment have not been imposed."
During the Russian audit, several "deficiencies" were found in Cuba's selection of Russian suppliers. Havana appears to have placed contracts with companies that have "minimal capitalization and scant production or marketing capabilities," Kosourov said.
The Cubans were not the only negligent party. The audit revealed a lack of control by the Russian authorities over the implementation of the contracts, and poor interaction between the Cuban and Russian authorities, resulting in poor service to the Cuban buyers.
The "deficiencies" caused delays in the negotiation in 2007-08 of another credit agreement between Moscow and Havana.
On Jan. 30, 2009, Russia granted Cuba credit for US$20 million toward the purchase of Russian agricultural, construction and energy equipment.
The Audit Chamber did not disclose the amount of the debt Cuba currently owes to Russia. According to 2005 figures, the debt stood at 17 billion rubles, the Russian newspaper Rusbalt said.
That's US$543,734,016.
The Chamber said it would send a full report, with recommendations, to the Kremlin and to the Russian Ministries of Finance and Economic Development, as well as to the Cuban Ministry of Auditing and Control.
---Renato Pérez Pizarro.