Novikombanka subsidiary of the Russian state corporation Rostec, became the first bank of Moscow in making effective the opening of a representative office in Cubaas had been announced last May.
According to a statement from the group of state companies, created in 2007, “this step will contribute to the achievement of a strategic objective: guarantee stable agreements between Russia and Cuba, as well as banking support for bilateral commercial, economic and investment ties.”
The new bank in Cuba, reported the Russian agency Interfax, will provide financial support for the promotion of Moscow industrial enterprises on the Island and will advise Cuban partners on project financing.
“I am sure that our experience in effective banking services for high-tech companies will be useful in financing promising Russian projects in Cuba and securing agreements between our countries,” said Elena Georgieva, president of the bank’s Board of Directors.
Rostec, formerly Rostechnológuii and owner of Novikombank, is a Russian state corporation established to promote the development, production and export of high-tech industrial products for the civil and defense sectors. Its main business groups are divided into three: aviation, electronics and weapons.
According to the statement, Novikombank, together with the three main banks in Cuba, will carry out operations for the transfer of commercial payments, banknotes, currencies and documentary operations in trade between Russia and Cuba. The bank also became a member of the Russian-Cuban Intergovernmental Commission.
In May, the banking entity requested its registration in the Registry of Financial Institutions and Non-Financial Entities attached to the Central Bank of Cuba, according to the Official Gazettewhich published resolution 40 of 2024, which made Russian banking representation effective on the Island.
According to the published decree, Novikombank may “manage, promote or coordinate the business carried out by its parent company, in freely convertible currency, with entities established in the national territory” and make “correspondent” agreements with “established financial institutions.” in Cuba.
On February 24, 2022, the Office of Foreign Assets Control (OFAC) of The US sanctioned Novikombank under Executive Order 14,024for “operating or having operated in the financial services sector of the economy of the Russian Federation.”
In December 2023, the United Kingdom subjected the Kremlin institution to additional sanctions, including the prohibition of correspondent banking relationships, in addition to the freezing of assets. Likewise, the entity was disconnected from the SWIFT international money transfer system.
