Name? Jose Daniel Ortega Saavedra
Westphalian identity? Nicaraguan
Age? 76
Why is he in the news? Putin has friends all over the world, not least in Central America. Nicaraguan President, Daniel Ortega, is in the news as one of the three key Russian allies in Latin America. Ortega was the first leader in the world to endorse the Russian invasion of Ukraine last month, defending the separatist regions’ claim to independence and stating that Russia is defending itself against Western aggression.
Why do we care? Ortega has had a long-time ally in Putin and Russia. Following his return to power in 2007 after the Russia-US quid pro quo over Nicaragua in 1990, Ortega has sought Cold War-level rapprochement with Russia for their aid in military, food and oil. Just as Putin alludes to the Soviet glory of Russia, Ortega seeks Soviet-levels of military aid to sustain his Sandinista revolution in Nicaragua.
Why should you care? In the face of U.S. sanctions and increasing regional isolation, Ortega relies on Russian arms deals and oil supply to keep the country running. Especially now that the last elections threatened Nicaragua’s position in the Central American Free Trade Agreement. Russian presence in Central America is technically a nuisance in US President Joe Biden’s backyard, but only a nominal threat in real terms. You should care 2/10.
Who else cares? Deputy Prime Minister of Russia, Yuri Borisov, went on a diplomatic tour in Latin America in the days leading up to the Russian invasion of Ukraine to visit Venezuelan President Nicolas Maduro, Cuban President Miguel Diaz-Canel and Ortega himself. Putin can use Nicaragua’s banking system—still integrated to the world banking system—as an operations base to move Russian capital to circumvent Western sanctions. The price? Ortega’s protection.
Any further comments? This would not be the first time Ortega’s banking system protects outliers. Nicaragua’s banks are also a bridge for illegal gold and coffee from Venezuela and the FARC in Colombia.
