Russia’s investments in Nicaragua are of such a small magnitude that the sanctions imposed by the United States and the European Union against the Eurasian power will not have a considerable impact on the national economy, but they do hinder the plans for future projects that will probably be they would be preparing for a process of strengthening relations between Managua and the Kremlin.
The problem with Russian investments in Nicaragua is that in addition to the fact that they have not had a considerable impact, many of these end up involved in the midst of the false promises of the Ortega regime’s propaganda, as initiatives that do not end up materializing.
One of these failed projects is the expansion of the Managua International Airport, Augusto C. Sandino, announced by Laureano Ortega Murillo since April 2016. According to reports from the regime’s propaganda media, the project consisted of signing a $300 million concessional loans with Russian banks for the extension of the runway and the airport terminal. The credit would be paid over a period of 40 years.
However, beyond the announcement made by Laureano Ortega, no more was known about this investment. The son of Daniel Ortega and Rosario Murillo also reported on that occasion investments financed by Russian money to build a complex of silos and mills for the storage and processing of basic grains. This other project was not developed either.
Tiziano Breda, an analyst for Central America at the International Crisis Group, explained that if these investments could not materialize since they were announced, it is very unlikely that they can be developed after the battery of sanctions against Russia in retaliation for the invasion of Ukraine ordered by Vladimir Putin.
“We have seen how Ortega has used pharaonic announcements of large investments and projects to win political points internally, but in the end they never started, as this airport expansion seems to be,” said the specialist.
Politics over economics
Breda points out that the link between Nicaragua and Russia is seen by both governments with more political objectives than economic ones. Neither Russia would be very interested in making large investments in Nicaragua, nor would the Ortega regime itself be betting on these to make millions of dollars flow in investment in our country.
“I do not really see the Government of Nicaragua seeing Russia as an important trading partner or waiting for concrete investments to arrive from that country.. I think they are aware that Russia’s interests in Nicaragua are minimal and the space to strengthen these projects is limited. I rather believe that Nicaragua sees Russia as a fundamental political partner that can provide support in international forums, particularly in the UN, and can cooperate in strengthening military ties, equipment for intelligence operations for political control and repression. and the purchase of military equipment for the Nicaraguan troops,” Breda explained.
Mechnikov plant unable to operate
Another of the Russian investments in Nicaragua is the Mechnikov vaccine plantbuilt at a cost of 21 million dollars between Russian funds and money from the coffers of the National Institute of Social Security that the regime used discretionally.
The regime’s propaganda maintains that the plant is operational. Even in October 2021, Laureano Ortega Murillo announced that he would soon venture into the production of the CoviVac vaccine, which is the third serum against covid-19 that he developed in Russia, but which is not approved by the World Health Organization. (WHO). However, this project does not show concrete signs of being ready either.
“The vaccine production plan at the Mechnikov plant is already something that had been discarded or never got off the ground. In addition, Sputnik V has had problems and will probably continue to have more international recognition problems. The demand for vaccines will continue to decline as the world’s immunized population reaches a level sufficient to contain this pandemic. That project, even without the impact of sanctions on Russia, its feasibility has always been doubted,” added Breda.
Another investment that emerged from Russia is the Yota telephone company, whose obscure origins date back to a company registered in Cyprus (Oromax Co. Limited), another in the Virgin Islands (Samone International Corp.) and the Nicaraguan company Telecomunicaciones de Nicaragua, SA (Telnicsa). , which has 25% of the shares of the telecommunications company.
Telnicsa is a company linked to José Mojica Mejía and José María Enríquez Moncada, two of the main figureheads of the business of the presidential family. Yota began operations in Nicaragua in December 2009, but its investments have been limited to Internet connection services.
“Russian investment in Nicaragua is negligible compared to other countries, such as the United States or the European Union, for example. But, the economic impact that these sanctions are already having may have an impact on the review of Russia’s investment plans in those countries that do not represent a direct benefit for the Russian economy,” Breda explained.
Apart from these false promises or half-built projects, the financial relationship between Russia and Nicaragua is reflected in specific points such as the purchase of buses, doses of the Russian Sputnik V vaccine and combat tanks.
In 2016, General Julio César Avilés, head of the Army, announced the purchase of 50 Russian T-72 tanks, without making clear the mechanism for their acquisition. At the beginning of May 2021, the purchase of 1.9 million Sputnik V vaccines from the Russian Fund was announced, without the Ministry of Health providing details of the transaction. In December 2021, the National Assembly controlled by the regime and its collaborator allies approved a loan of 18.9 million dollars for the purchase of 250 Russian buses.
More fluid cooperation in the military field
However, it is the military aspect in which the greatest interest of the dictatorship is seen orteguista in reaching agreements that allow expanding its operational capacity.
In that sense, the installation of a ground station that allows connection with 24 Russian satellites from a place near the Laguna de Nejapa in Managua and a police training center against drug trafficking, where Central American officers are educated, has been achieved.
There are reports about global aid from Russian cooperation to the Air Force, or any of the other national military directorates, but this is managed stealthily by the Nicaraguan Army.
Daniel Ortega is the Central American ruler who most clearlye has lined up in favor of Vladimir Putin’s interventionist stance in the war in Ukraine.
A week before Russian tanks stormed the Ukrainian border to launch the invasion, the regime received a visit from Deputy Prime Minister Yuri Borisov, who in a meeting with the Nicaraguan government official promised to strengthen support for the Nicaraguan Army and triple trade with Nicaragua, which, according to reports, is around 160 million dollars a year. Beside him, Ortega applauded the imminent invasion and supported Vladimir Putin’s war adventure.
