Caribbean & Central America - December 2013 (ISSN 1741-4458)

Boosting ties with Russia: On 27 November Guatemala’s economy minister, Sergio de la Torre, and Russia’s deputy minister for economic development, Alexei Likhachev, announced the inking of an agreement to promote and protect investments (Appri). The announcement was made during a visit to Russia by a Guatemalan delegation which included De la Torre as well as Foreign Minister Fernando Carrera and Energy Minister Erick Archila. According to a press release by the Guatemalan economy ministry, bilateral discussions regarding the Appri began in February 2010 and were completed in May 2013. A press release by the Guatemalan presidency highlighted as examples of Russian involvement in the country, the authorisation in April 2013 of a licence for mining exploitation to the Compañía Guatemalteca de Níquel, S.A, (CGN), a subsidiary of Russia’s Solway Investment Group Limited Inc. in the El Estor municipality, Izabal department. The nickel mining project, which is due to come on stream in 2014 and has triggered social unrest, is expected to create 3,000 jobs and G$521m (US$65m) in taxes. The press release also highlighted Russian interest in the area of infrastructure. According to figures from the Central American economic integration system (Sieca), bilateral trade reached US$91m in 2012, of which Russian exports to Guatemala accounted for US$76.5m. While Russia’s exports have just about recovered to their 2008 peak following a significant decline in 2009, Guatemala’s exports dropped sharply from an estimated US$37.8m in 2011.

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