China is significantly increasing its economic involvement in Cuba by launching a major energy project involving the construction of 55 solar power plants. This move comes as the island nation faces a deepening crisis marked by severe shortages of fuel, food, and medicine, along with frequent large-scale power outages. Over the past year, Cuba’s national power grid has collapsed four times, halting operations at schools and businesses, reports the Baltimore Chronicle citing Reuters.
The Chinese project aims to significantly boost Cuba’s electricity generation capacity, helping to cover the country’s daytime energy shortfall and reduce fuel consumption for nighttime power supply. Chinese ships have already started delivering equipment, spare parts, and fuel to the port of Mariel to support the construction process.
Meanwhile, Russian initiatives on the island are facing major setbacks. In May 2023, a $100 million steel plant — the largest of its kind in Cuba — was inaugurated using Russian credit funds. However, operations have not begun due to a lack of fuel and electricity.
In 2023, Russian and Cuban entities signed at least eight agreements, including contracts for wheat supplies, the opening of a supermarket under the “Rusmarket” brand, and the restoration of historic buildings. However, most of these projects have failed to materialize: the buildings remain abandoned, shops have not opened, and church restoration efforts have come to a halt.
Since 2018, Cuba has been a participant in China’s “Belt and Road” initiative, under which Beijing has been systematically investing in the country’s key infrastructure. In contrast, Moscow is losing its status as Cuba’s primary foreign economic partner due to its inability to provide financing or deliver on project implementation.
Despite Beijing’s proactive approach and Russia’s formal agreements, experts note that current investments are still insufficient to resolve Cuba’s structural economic problems. Moreover, the financial terms of these projects remain opaque, and it is unclear how Havana plans to meet its obligations.
Earlier we wrote that China unveils graphite bomb capable of knocking out power grids.