Russia to seek oil in Cuban Gulf

Russia is to begin oil exploration in the Gulf of Mexico, after signing a deal with Cuba, says Cuban state media. Russian Deputy Prime Minister Igor Sechin signed four contracts securing exploration rights in Cubas economic zone in the Gulf. Havana says there may be some 20bn barrels of oil of its coast but the US puts that estimate at five billion. Russia and Cuba have been working to revitalise relations, which cooled after the collapse of the Soviet Union. Russias Zarubezhneft oil concern will work alongside the Cubapetroleo monopoly in the deep waters of the Gulf. Under the new agreement, Russia has also granted a loan of $150m to buy construction and agricultural equipment. Havana imports more than half of its oil, mostly at a subsidized price from Venezuela.