MOSCOW, July 27 (RIA Novosti) - Russia may provide a $150 million loan to Cuba to finance deliveries of Russian construction and agricultural machinery, following a resolution signed by Russian Prime Minister Vladimir Putin on Monday.
The resolution drafted on July 22 instructs the Russian Finance Ministry to hold negotiations with Cuba and sign a corresponding agreement on Russia's behalf, if an accord is reached.
The loan is expected to be granted for two years from the date an agreement is signed, and will be drawn down to pay for contracts on imports of Russian machinery.
The loan will be repaid quarterly at a fixed rate of 7% per annum. Overdue debts will be serviced at a rate of 8% per annum.
The agreement is to be "signed for the purpose of further developing and strengthening friendly relations between the two countries and developing mutually advantageous cooperation," the resolution says.
Trade ties between Russia and Cuba stalled after the collapse of the Soviet Union, when Russia faced financial difficulties and halted huge Soviet-era subsidies.
In recent years, however, Russia has moved to revive ties with Cuba, as well as other Latin American states. President Dmitry Medvedev visited Havana in November, and a Russian anti-submarine destroyer and two logistical warships docked in Cuba in December.
