Cuba-Venezuela Relationship Helping Island Outmaneuver U.S., Experts Say

Diplomats and experts have been wondering where Castro is getting the cash for such initiatives given that in recent years the country has suffered poor domestic production, chronic power blackouts and anemic economic growth.

The partial answer came late last month when Venezuelan Energy Minister Rafael Ramirez acknowledged the oil-rich nation has increased shipments of oil to Cuba on preferential terms.

The increased oil shipments of 90,000 barrels daily, up from 53,000 barrels, were announced during a visit here by leftist Venezuelan President Hugo Chavez. They represent a gigantic subsidy for the Cuban economy and ease pressure on the Cuban leadership to implement economic reforms.

“Without this artificial lifeline the Cuban economy would be dead in the water,” said Damian Fernandez, director of the Cuban Research Institute at Florida International University in Miami.
Chicago Tribune via KansasCity.com