Russia will lease eight jets worth £426 million to Cuba and partially write off the country's £20 billion Soviet-era debt in a deal signed during Russian Prime Minister Dmitry Medvedev's visit to Havana.
Moscow will also offer Cuba a refinancing plan for the outstanding debt, Russian Trade Minister Denis Manturov said today.
He said there was "an accumulated debt on loans allocated by the Soviet Union" and that a final deal will be signed by the end of the year.
Russia will also lease Cuba three long-haul jets, three regional planes and two mid-range aircraft.
Moscow will provide sovereign guarantees to a syndicate of Russian banks financing the deal, Mr Manturov said.
Trade between the two countries last year was worth about £130 million.
As part of Cuba's bid to tap undersea oil wealth, Russia's Zarubezhneft oil exploration company is drilling the island's deepest offshore well yet.
The oil exploitation is crucial for Cuba, which at present relies heavily on close ally Venezuela for low-priced supplies.