Abstract

The abrupt breakup of the USSR and socialist bloc in the early 1990s dealt a devastating blow to the island's economy. Almost overnight, beneficial aid and trade provided by the Council for Mutual Economic Assistance ground to a halt, including 80% of foreign trade previously conducted as barter and sales of 13 million tons of oil per year at preferential prices. When the Cuban economy bottomed out in 1993, oil imports had dropped from 13 to 4 million tons annually. At the time, Cuba depended almost entirely on imported oil and the dramatic decline in imports created massive blackouts, leaving most Cuban homes without electricity 12 hours a day.

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