SOVIET AID TO CUBA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00287R000400450001-0
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: August 19, 2010
• Sequence Number: 1
• Publication Date: May 13, 1983
• Content Type: REPORT

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Washington, D. C 20505
DIRECTORATE OF INTELLIGENCE
13 May 1983
SOVIET AID TO CUBA
for its oil imports of approximately 80 million barrels.
of its Cuban sugar imports. In addition, it charged Havana only
an estimated $16 per barrel--half the 1982 OPEC benchmark price--
subsidies for Cuba's sugar exports and oil imports. We estimate,
based on pricing trends in recent years, that Moscow paid the
equivalent in transferrable rubles of about 42 cents per pound,
or nearly five times the world market price, for 3.2 million tons
We have just completed a review of Soviet economic and
military assistance to Cuba for 1982 which we estimate at $5.3
billion. Most of the aid--$4.7 billion--was economic. Of this
portion, $3.8 billion was in the form of nonrepayable trade
to 17 years with a five year grace period and no interest
charges. In practice most of it probably will be excused.
The remainder of the economic aid--$0.9 billion--was Cuba's
soft-currency trade deficit with the USSR. This aid is
considered repayable, but the Cubans claim it is financed for 15
deliveries--was $0.59 billion.
We use DIA estimates for the value of military assistance to
Cuba. Their estimate for 1982--based on a fixed value per ton of
The aid for 1982 represents a sharp increase over 1981 ($4.5
billion) and 1980 ($3.2 billion). Most of it was caused by the
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large increase in the sugar subsidy. The sugar subsidy increased
22 percent in 1981 and 90 percent in 1982 due to the sharp
decline in world market prices over the period, the maintenance
of Soviet prices at 40-42 cents a pound, and the increase in
Cuban sugar exports to Moscow. The oil subsidy remained about
the same at $1.4 billion as world market oil prices and Soviet
deliveries to Cuba stabilized. Accordingly, as the world oil
price stabilizes or drops, the Soviet petroleum subsidy to Cuba
will decline in the next few years. Similarly, if the world
price of sugar rises significantly, the amount of Moscow's sugar
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 Sanitized Copy Approved for Release 2010/08/19: CIA-RDP85T00287R000400450001-0
SUBJECT: Soviet Aid to Cuba
Distribution:
Orig - Addressee
1 - Ambassador Thomas 0. Enders
1 - The Honorable Robert C. McFarlane
1 - The Honorable Marc E. Leland
1 - Vice Admiral Arthur S. Moreau
1 - The Honorable Fred C. Ikle
1 - D/ALA
1 - ALA Research Director
2 - ALA/PS
4 - OCPAS/IMD/CB
1 - C/ALA/MCD
5 - ALA/MCD/CC
ALA/MCD/CC/D.
13 May 1983)
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