Havana/Novikombank, which belongs to the Russian state corporation Rostec, announced today that it has become the first Russian bank to open a branch in Cuba. “This step will contribute to achieving a strategic objective: guaranteeing the stability of payments between Russia and Cuba, and also banking support for economic-commercial relations and investments,” says the bank’s statement.
The branch will focus on financially supporting the work of Russian companies present in the country in areas such as the construction of aircraft, engines and automobiles, oil extraction or the radio electronics industry. Novikombank is also confident that the opening of the office, which is located in Havana, will expand interaction with Cuban banks and clients, both existing and potential.
The president of the bank, Yelena Georgieva, is also convinced that the branch in Cuba “is not only a new stage for the bank, but also an important step in Russian-Cuban relations.” In particular, she highlighted Novikombank’s experience in financing high-tech companies.
The branch in Cuba “is not only a new stage for the bank, but also an important step in Russian-Cuban relations”
The bank has been guaranteeing cooperation between Russian and Cuban companies in tourism, transportation and energy for several years, and together with three other Cuban entities it formalizes payment operations in bilateral commercial transactions. Last December, Russia already activated access to Mir bank cards, the Russian alternative to Visa and Mastercard, in Cuban payment terminals.
Previously, Cuba authorized the use of these cards in the country’s ATMs, with which Russia has strengthened political and commercial relations in recent years.
Last May, two resolutions of the Central Bank of Cuba, published in the same official Gazettegave way to the opening of the Novikombank office and accepted the withdrawal of Banco Bilbao Vizcaya Argentaria (BBVA) from Havana.
Under the supervision of the BCC, Novikombank will be able to function as a “correspondent” with entities authorized in Russia to do business with Cuba
Both documents, signed by the minister president of the BCC, Juana Lidia Delgado Portal, represented the end of one era and the beginning of another. The deal with Novikombank is not without political implications: not only does it represent another step in the rapprochement of Havana and the Kremlin, but the entity has been one of the companies sanctioned by the United States after Vladimir Putin’s invasion of Ukraine.
Four members of its board are banned by Washington and it was disconnected from the Swift system by the European Union. From it, the United Kingdom – which also froze its funds in that country – has assured that “it would be benefiting from, or supporting the Kremlin through its participation in businesses related to strategic industries for the Russian Government.”
Under the supervision of the BCC, Novikombank may function as a “correspondent” with entities authorized in Russia to do business with Cuba, but is “prohibited from directly carrying out active or passive banking or financial operations of any kind,” the document clarifies. Among its functions will be “managing, promoting or coordinating the businesses carried out by its parent company, in freely convertible currency (MLC) with entities established in the national territory.” The Novikombank office in Havana will also have to “exhibit for examination its books, as well as documents and other information that BCC officials may request.
