The Russian ambassador to Cuba says the countries are implementing financial mechanisms to help shield their local economies.
A financial mechanism refers to the way in which a business, organization, or program receives the funding necessary for it to remain operational. The countries are considering new mechanisms for mutual settlements, including in Ruble and cryptocurrencies, as well as clearing schemes. Moscow has been also promoting its SPFS Interbank Messaging System as an alternative to SWIFT as the west has ramped up economic restrictions.
They hope these changes will help protect cooperation with Cuba from the negative impact of the US trade, economic and financial blockade. Nearly 470 participants, including foreign entities from 14 countries, have already joined the SPFS. Russia has also accelerated efforts to move away from the US Dollar and Euro towards settlements in national currencies.
Cuba has been under US sanctions for more than 60 years. Meanwhile, Russia is currently the world’s most sanctioned country after the US and its allies introduced over 11 thousand individual restrictions against the nation over the conflict in Ukraine.