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Thread: Comrades In Arms

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    Default Comrades In Arms

    Comrades In Arms
    It had the atmosphere of the Cold War.

    Venezuelan president Hugo Chavez's trip to Russia this month brought back memories of the 40-year East-West confrontation when Fidel Castro was the Soviet Union's favorite Latin American dictator. The warm greeting, the fact it was Chavez's sixth visit to Russia and his use of the familiar Russian 'you' (ty) when talking to Vladimir Putin indicated the closeness of the relationship that was once Castro's.

    Even the rhetoric was the same. Like El Presidente, Chavez insisted on a "strategic alliance" to meet "the threat of the United States" and requested the Russians establish a base on Venezuelan territory. The only thing missing was a mention of Cuba's dismal fate, which Chavez seems bent on imitating.

    The anti-American Venezuelan leader, who once described himself as "very Maoist all of my life", is always welcome in Moscow. In the past, the outspoken dictator has left behind billions of dollars in orders for the latest Russian weaponry, making his country Russia's third best customer for armaments after China and India. And Chavez did not disappoint his hosts this time either.

    On his shopping list this visit were tanks, coastal surveillance aircraft, air defence systems and non-atomic submarines, all of which represent another instalment of the five to six billion dollars oil-rich Venezuela eventually plans to spend on Russian arms. This latest purchase, combined with the previous ones, have made the South American country Russia's biggest arms customer in Latin America.

    Already between 2005 and 2007, Venezuelan oil revenues bought an estimated two billion dollars in Russian weapons. Among these items was a controversial purchase of 100,000 Kalashnikov assault rifles. Although Chavez claimed they were for home defence use, some of them, it is believed, were smuggled to leftist South American terrorist organizations in neighboring countries, such as FARC in Colombia.

    Chavez has said the Russian weapons he has purchased will protect his country from an American invasion, a claim that Washington calls ludicrous. Venezuela's president believes the United States may one day try to capture his country's oil reserves. Venezuela is currently the world's fifth-largest exporter of oil and provides America with about 15 per cent of its crude imports.

    The real reason behind Chavez's Russian arms purchases, however, is not self-defence. On the contrary, one analyst states they are meant to back up his ongoing quest to expand his influence in South America. Chavez's end goal is the creation of an anti-American bloc with himself as leader, which would also satisfy his reported inclination to megalomania. In carrying out his plan, he is emulating his hero, Castro, who long tried to export communist revolution throughout the region.

    For its part, the Kremlin's main emphasis during Chavez's trip was not on the arms sales but rather the signing of energy exploration agreements. In this the Russian leadership achieved its goal. Russian oil and gas companies had already been exploring in Venezuela; but the agreements Chavez signed during his recent visit have given the giants in the Russian energy field an expanded role.

    "We can say that Russia and Venezuela have achieved a strategic alliance in the energy sphere," he said.

    Russia regards its support for Chavez as a countermove to the much disliked missile defence system the United States intends to set up in Czechoslovakia and Poland. The Chavez gambit is also seen as a response to American bases established in Central Asian countries that were once Soviet republics. The Kremlin still regards these states as being within its sphere of influence.

    Moscow was also unhappy with the thousand American troops sent this month to Georgia, a country on its southern border, to conduct joint military exercises with Georgian forces. The Russian army immediately staged a counter exercise close by. And only last week Moscow announced as another countermeasure its intention to have long-range bombers refuel in Cuba, six years after it had closed its last base there.

    But Russia's and Venezuela's attraction for one another may also concern the political nature of these states. Analyst and author Robert Kagan has written that the world's new political alignment will see democracies line up against autocracies, citing as an example the Shanghai Cooperation Organization, which consists of autocracies led by Russia and China. These two world powers, Kagan adds, will always offer fellow autocrats, like Chavez and Zimbabwe's Mugabe, refuge and assistance.

    But with this Russian "assistance" in the form of weapons, Chavez has only succeeded in fuelling a regional arms race. Chile is now spending colossal sums on arms, as are Brazil and Colombia. London's International Institute For Strategic Studies stated defence expenditures in Latin America in 2003 were 25 billion dollars, while last year they reached 38 billion. Such high outlays for weapons will probably see Venezuela's economy eventually suffer the same bleak fate of Cuba's and the Soviet Union's, which also emphasized armaments and expensive foreign adventures to the detriment of internal development.

    Such large arms purchases by South American countries also represent an obvious potential for regional destabilization, especially combined with Chavez's dangerous unpredictability. These factors probably played a role in the decision to reactivate the U.S. Fourth Fleet last April after nearly 60 years. The fleet's home port will be in Florida and it will patrol Caribbean and South American waters.

    Predictably, it was the three leftist, anti-American regimes in South America, Venezuela, Bolivia, and Cuba, who were most vociferous in protesting the fleet's return. Castro, who knows about American naval blockades, even wrote an article against it in a Cuban newspaper. Chavez simply called it "an act of war."

    But one Latin American newspaper reported that Mexican drug cartel criminals are being sent to Iran via Venezuela for advanced training in building car bombs. If one such terrorist vehicle should ever be detonated, with Venezuelan assistance, in the United States, then Chavez would suffer a worse fate than Castro ever did. The Fourth Fleet would see to that.

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    Default Re: Comrades In Arms

    From The Times

    September 19, 2008

    Russia ratchets up US tensions with arms sales to Iran and Venezuela


    http://www.timesonline.co.uk/tol/new...cle4781027.ece



    (Misha Japaridze)

    Russia's strategic aircraft, the Tu-160 or White Swan, the world's largest supersonic bomber. A pair of them touched down in Venezuela this week as Moscow announced big new arms sales

    Tony Halpin in Moscow and Alexi Mostrous in Washington

    Russia defied the United States yesterday by announcing plans to sell military hardware to Iran and Venezuela.

    The head of the state arms exporter said that he was negotiating to sell antiaircraft systems to Iran despite American objections. Russia has already delivered 29 Tor-M1 missile systems under a $700 million (£386 million) deal with Iran in 2005.

    “Contacts between our countries are continuing and we do not see any reason to suspend them,” Anatoli Isaikin, the general director of Rosoboronexport, told the RIA-Novosti news agency at an arms fair in South Africa.

    Reports have circulated for some time that the Kremlin is preparing to sell its S300 surface-to-air missile system to Iran, offering greater protection against a possible US or Israeli attack on the Islamic republic’s nuclear facilities. The missiles have a range of more than 90 miles (150km).

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    Sergei Chemezov, the head of the state-owned Russian Technologies, also disclosed that Venezuela’s leader, Hugo Chávez, wanted to buy antiaircraft systems, armoured personnel carriers, and SU35 fighter jets when they come into production in 2010.

    The Deputy Prime Minister, Igor Sechin, one of the closest allies of Mr Putin, the Prime Minister, visited Venezuela and Cuba this week.

    Kommersant, the financial newspaper, said that Russia was forming “alliance relations” with the two antiAmerican regimes as a response to US involvement in former Soviet republics.

    The Russian moves mark a serious deterioration in relations between Washington and Moscow. Condoleezza Rice, the US Secretary of State, threated to block Russia’s membership of key international organisations.

    She told the Kremlin that its “authoritarian policies” could prevent it from joining the World Trade Organisation and the Organisation for Economic Cooperation and Development, which coordinates economic policies among industrialised countries. In an outspoken speech to the German Marshall Fund, an institution promoting greater cooperation between America and Europe, Dr Rice said: “The picture emerging is of a Russia increasingly authoritarian at home and aggressive abroad.

    “Russia’s bid to join the World Trade Organisation is now in question. And so too is its attempt to join the Organisation for Economic Cooperation and Development.”

    She added: “Russia’s international standing is worse now than at any time since 1991.”

    The WTO is due to meet in Geneva on Thursday to discuss Russia’s bid to join the global trade body, a process that began in 1993, soon after the collapse of the Soviet Union.

    Dr Rice said that Russia’s actions in Georgia fitted into a “worsening pattern of behaviour”, which included its “intimidation of its sovereign neighbours, its use of oil and gas as a political weapon, its threat to target peaceful nations with nuclear weapons, its arms sales to states and groups that threaten international security and its persecution – and worse – of Russian journalists and dissidents.”

    She repeated the US commitment to put forward a $1 billion economic support package for Georgia. The European Union has already pledged $500 million.

    At the heart of the dispute between the two former Cold War adversaries is Moscow’s insistence that America and its Nato allies are interfering in Russia’s “near abroad” and threatening its interests. The Kremlin is furious about plans to site an antimissile shield in Eastern Europe. The interceptors are designed to stop ballistic missile attacks from Iran but Russia believes the system in Poland and the Czech Republic is aimed at weakening its military capability.

    Ruslan Pukhov, the director of the Centre for Analysis of Strategies and Technologies in Moscow, said that it was logical to conclude a lucrative contract with Iran “in the current situation, when the US and the West in general are stubbornly gearing toward a confrontation with Russia”.

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    Default Re: Comrades In Arms

    Venezuela-Russia ties deepen despite US pressure

    http://www.washingtontimes.com/news/...-us-pressur-1/

    IAN JAMES ASSOCIATED PRESS

    Originally published 09:01 p.m., September 18, 2008, updated 08:49 p.m., September 18, 2008


    CARACAS, VENEZUELA (AP) - Venezuela and Russia are strengthening their strategic alliance with new plans to cooperate on oil production, weapons and even wireless technology, the governments said as two visiting Russian Tu-160 bombers left for home on Thursday.

    Venezuelan President Hugo Chavez, traveling to Moscow next week at the invitation of Prime Minister Vladimir Putin, is planning new oil projects with Russian companies and joint military exercises with Russian warplanes and ships in the Caribbean by December.

    Venezuela also is in talks to buy Russian air defense systems and armored vehicles, and has expressed interest in the new Su-35 fighter, due off assembly lines in 2010, said Sergei Chemezov, general director of the Russian state holding company Rostekhnologii, according to Russia's Interfax news agency.

    The allies have sealed more than US$4 billion in defense deals since 2005. Venezuela has bought Sukhoi fighter planes, Mi-17 helicopters, and 100,000 Kalashnikov assault rifles, most of which have already been delivered.

    Chemezov spoke to reporters in Caracas on Wednesday while accompanying Russian Deputy Prime Minister Igor Sechin, who stressed that while energy cooperation is paramount, the military relationship also is strengthening.

    Russia has agreed to help build a factory in Venezuela to make rifles and ammunition, and to set up a center to train pilots and fix helicopters.

    The countries also are discussing joint projects to build ships and cars.
    Russian officials even offered to install broadband wireless networks to provide cheap Internet and telephone service to Caracas, Chemezov told Russia's Itar-Tass news agency.

    The countries' military cooperation is growing "more solid every day," Venezuelan Defense Minister Gen. Gustavo Rangel said.

    Their alliance was mocked on Thursday by U.S. Secretary of State Condoleezza Rice, who said Russia is only isolating itself.

    The United States is confident that its own relations with Western Hemisphere countries "will in no way be diminished by a few, aging Blackjack bombers visiting one of Latin America's few autocracies," she said.

    Chavez, who expelled the U.S. ambassador to Caracas last week while accusing Washington of backing a plot against him, told reporters this week that the alliance doesn't pose a threat to any other country, and that he welcomes Russian help in research, economic development and defense technology.

    Russia's economic influence is clearly expanding in the Americas. Bolivia announced Thursday that it would sign an oil and natural gas exploration deal with Russian state energy giant Gazprom. Terms of the deal weren't immediately disclosed.

    And Sechin announced that five of Russia's biggest oil companies are looking to form a consortium to increase Latin American operations.

    State-controlled Rosneft, Lukoil, Gazprom Neft, Surgutneftegaz and TNK-BP hope to build a US$6.5 billion refinery to process Venezuela's tar-like heavy crude, Russia's RIA Novosti news agency reported.

    Such an investment could help Venezuela, the world's ninth-biggest oil producer, wean itself off the U.S. refineries it now depends on to process much of its crude. Already, Chavez has moved to reduce the involvement of private companies including Exxon Mobil, Chevron and ConocoPhillips while striking new oil development agreements with state oil companies from Iran and China.

    Russian companies Gazprom and Lukoil also have signed agreements with Venezuelan state oil company Petroleos de Venezuela SA to jointly explore several Orinoco fields.

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    Default Re: Comrades In Arms

    Chavez: Latin States Should Partner With Russia Against U.S.

    By VLADIMIR ISACHENKOV, Associated Press | September 21, 2008 http://www.nysun.com/foreign/chavez-...r-with-russia/



    MOSCOW — President Chavez of Venezuela said in an interview broadcast today that Latin America needs strong friendship with Russia to help reduce American influence and keep peace in the region. The interview aired as a Russian Navy squadron prepared to sail to Venezuela.

    Venezuela recently hosted a pair of Russian strategic bombers and is preparing to conduct a joint naval exercise with Russia. Russian media said Mr. Chavez plans to visit Moscow Friday, his second trip in just over two months.

    "Not only Venezuela, but Latin America as a whole, needs friends like Russia now as we are shedding this (U.S.) domination," Mr. Chavez told Russia's Vesti 24 television. "We need Russia for economic and social development, for all-around support, for the life of the peoples of our continent, for peace."

    During the Cold War, Latin America became an ideological battleground between the Soviet Union and America.

    The Kremlin has moved to intensify contacts with Venezuela, Cuba, and other Latin American nations amid increasingly strained relations with Washington after last month's war between Russia and Georgia.

    The weeklong deployment of a pair of Tu-160 strategic bombers to Venezuela — and the plan to send a navy squadron there — mark a projection of Russian military power to the Western Hemisphere unprecedented since the Cold War.

    The nuclear-powered Peter the Great missile cruiser, accompanied by three other ships of Russia's Northern Fleet, was preparing to sail from its base on a cruise that will include a joint exercise with the Venezuelan Navy, a Navy spokesman, Igor Dygalo, said on Vesti 24 television. The RIA Novosti news agency quoted the Northern Fleet command as saying the ships will likely leave early tomorrow.

    Russian officials had said earlier that the squadron was to head to Venezuela in November. They would not explain the change.

    Russia's intensifying military contact with Venezuela appears to be a response to the American dispatch to Georgia of warships carrying aid after its war with Russia. Russian officials harshly criticized the American deployment to Georgia's Black Sea coast.

    President Medvedev warned this month that Russia could follow its dispatch of bombers to Venezuela by deploying forces to other friendly nations.

    Under Mr. Chavez, Venezuela has cultivated close ties with Moscow and placed big orders for Russian jets, helicopters, and other weapons. Mr. Chavez has repeatedly warned that America poses a threat to Venezuela.

    Russia has signed weapons contracts worth more than $4 billion with Venezuela since 2005 to supply Sukhoi fighter jets, Mi-17 helicopters, and 100,000 Kalashnikov assault rifles. Mr. Chavez's government is in talks to buy Russian submarines, air defense systems and armored vehicles, and more Sukhoi jets.

    Russian and Venezuelan leaders have also talked about boosting cooperation in the energy sphere to create what Mr. Chavez has called "a new strategic energy alliance."

    Russian companies Gazprom and Lukoil have signed agreements with Venezuelan state oil company Petroleos de Venezuela SA to jointly explore several Orinoco fields.

    Russia's Deputy Prime Minister, Igor Sechin, who visited Venezuela last week, announced that five of Russia's biggest oil companies are looking to form a consortium to increase Latin American operations. State-controlled Rosneft, Lukoil, Gazprom Neft, Surgutneftegaz, and TNK-BP hope to build a $6.5 billion refinery to process Venezuela's tar-like heavy crude.

    Such an investment could help Venezuela, the world's ninth-biggest oil producer, wean itself from the American refineries on which it depends to process much of its crude. Already, Mr. Chavez has moved to reduce the involvement of private companies, including Exxon Mobil, Chevron, and ConocoPhillips, while striking new oil development agreements with state companies from Iran and China.

    "The level of our development allows us to conduct strategic projects in Latin America," Mr. Sechin said in remarks broadcast Sunday on Vesti 24 television.

    And he warned America that it should not view the region as its own backyard: "It would be wrong to talk about one nation having exclusive rights to this zone."

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    Default Re: Comrades In Arms

    Quote Originally Posted by vector7 View Post
    During the Cold War, Latin America became an ideological battleground between the Soviet Union and America.

    The Kremlin has moved to intensify contacts with Venezuela, Cuba, and other Latin American nations amid increasingly strained relations with Washington after last month's war between Russia and Georgia.
    And we've done NOTHING to counter it! In fact, it has pretty much been ignored in the press save for a few seconds of news bites.

    We are watching Latin America go solidly leftist and invite our enemies to our doorstep.

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    Venezuela to buy Chinese combat planes: Chavez

    http://afp.google.com/article/ALeqM5...c_Fp2AJiF8fTbA

    CARACAS (AFP) — Venezuela will buy combat and training aircraft from China this week, leftist Venezuela President Hugo Chavez confirmed in a television broadcast Sunday.

    The purchases will be made as part of a six-country tour, Chavez said in his broadcast of the "Alo President" television program from the Miraflores presidential palace in Caracas, hours before leaving on a "strategic interest" trip to Cuba, China, Russia, Belarus, France and Portugal.

    Chavez, a staunch foe of the US government, confirmed that during his stay in Beijing he will purchase 24 K-8 aircraft "to train fighter pilots." The planes could be part of Venezuela's air force by next year.

    The president also confirmed that while in Beijing he will arrange the construction of tanker vessels in Chinese shipyards, with the aim of installing a shipyard in Venezuela in the near future.

    These plans come in addition to the construction of a refinery in China to process oil from Venezuela, and plans to create a bi-national company to install a refinery in the remote oil-rich Orinoco region in eastern Venezuela.

    Caracas provides 500,000 barrels of oil per day to Beijing, a trade which is expected to increase to one million barrels a day by 2012.

    Chavez, who describes China as a strategic ally, will move forward with a six billion dollar bilateral investment fund. China will contribute four billion dollars to the fund, and Venezuela two billion dollars.

    Caracas will use the fund for "socialist productive projects."

    "Before we had to go to Washington to beg for money. Not now. Now we negotiate with the Chinese," said Chavez.

    Chavez announced that during his visit to Beijing the investment fund will benefit from an additional four billion dollars for further "development" in Venezuela.

    After China, Chavez will head to Moscow.

    Venezuela in recent years has been broadening its military ties to Moscow, and Chavez backed Russia in the recent Georgian conflict.

    Last week, Russian supersonic Tu-160 bombers for the first time flew training runs with Venezuela in an area of the Caribbean traditionally considered the US military's sphere of influence.

    Chavez's trip is expected to last until September 27.

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    Venezuela's Chavez in Beijing at start of visits to China, Russia, Europe

    By CHRISTOPHER BODEEN, AP
    Tuesday, September 23, 2008


    http://www.chinapost.com.tw/internat...27s-Chavez.htm

    BEIJING -- Venezuelan President Hugo Chavez said his country is no longer the backyard of the U.S. and that he finds it more important to visit Beijing than New York, as he arrived Tuesday in China's capital on first leg of an international tour. The outspoken U.S. critic hopes to boost ties with China's communist leadership through increased oil sales, partly to reduce dependency on the United States, which still buys about 60 percent of Venezuelan exports despite years of tensions.

    "China is showing the world that it isn't necessary to harm anyone to be a great power. They are soldiers of peace," Chavez said upon his arrival in Beijing, according to a Venezuelan government statement.

    Asked about his absence from talks this week on the sidelines of the United Nations in New York, Chavez said: "It's much more important to be in Beijing than in New York."

    Chavez's visit comes amid stepped-up confrontation with the U.S., including Russia's dispatch Monday of a naval squadron to hold joint maneuvers with Venezuela's navy.

    The deployment of Russian military power to the Western Hemisphere is unprecedented since the Cold War and follows a weeklong visit to Venezuela by a pair of Russian strategic bombers.

    "The only thing we demand is that our nation be respected," Chavez said according to the government statement. "We're no longer the backyard of the United States."

    Asked about Venezuela's relations with the U.S., Chinese Foreign Ministry spokeswoman Jiang Yu emphasized Beijing's wish not to let ties with Chavez's government complicate relations with Washington.
    "Our bilateral relations are not based on ideology, and are not against a third party, and will not affect any other country's relations with Venezuela," Jiang said.

    China is a key link in Chavez's strategy to develop new markets for its oil exports, and Venezuelan state oil company Petroleos de Venezuela SA, or PDVSA, has ramped up shipments to China to 250,000 barrels a day as of April. It aims to lift that figure to 500,000 barrels a day by 2010.

    Venezuela and China have also signed accords to build three refineries in China. Other plans call for building a refinery and launching a joint oil resource development project in the crude-rich Orinoco River belt and for China to build oil tankers for Venezuela.
    China will also launch Venezuela's first satellite on Nov. 1 and may sell the country fighter jets.

    China's Foreign Ministry says Chavez plans to hold talks with Chinese President Hu Jintao, with the sides signing documents on cooperation in justice, sports and other fields.

    Beijing has not commented on reports that Venezuela will buy two dozen fighters, reported to be K-8 Karakorum basic jet trainers developed jointly by China and Pakistan.

    Chavez's upcoming visit to Russia will be his second in about two months, to be followed by stops in Portugal and France, where Chavez is to meet with President Nicolas Sarkozy.

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    Venezuelan president arrives in China

    Updated 4:37 a.m. EDT, Tue September 23, 2008

    (CNN) -- Venezuelan President Hugo Chavez arrived in Beijing Tuesday to meet with top Chinese officials and to discuss the possibility of buying weapons, state-run media reported.


    Venezuelan President Hugo Chavez, center, arrives in Beijing at the start of an official visit on Tuesday.

    http://www.cnn.com/2008/WORLD/asiapc....chavez.visit/

    Chavez is in China for meetings with President Hu Jintao, along with other "relevant state leaders," according to the Xinhua news agency.
    Their discussions are expected to include "bilateral relations and issues of mutual concern," Xinhua reported. Venezuela is reportedly working on a deal to purchase Chinese K-8 military training planes.
    The nations are also expected to sign cooperation agreements in the areas of "justice, sports, and quality supervision and inspection."
    Two months ago, Chavez made a similar visit to Russia, meeting with Prime Minister Vladimir Putin and President Dmitry Medvedev and is scheduled to be there again this week.
    During the July visit, the Venezuelan leader negotiated for the purchase of Russian military equipment.
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    Since then, Chavez has bragged that it has Russia as an ally. Two Russian strategic bombers have been deployed to Venezuela and three Russian warships have sailed for Venezuela for joint maneuvers with the leftist government.

    The moves come amid increasing tensions with the United States over the Russia-Georgia conflict last month. The intensifying contacts with Venezuela appear to be a response to the U.S. dispatch of warships to the Black Sea delivering aid to Georgia, which angered the Kremlin.

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    World

    Hugo Chavez in China on official visit





    http://en.rian.ru/world/20080923/117044340.html


    BEIJING, September 23 (RIA Novosti) - Venezuelan President Hugo Chavez arrived in China on Tuesday for a three-day state visit, part of his week-long world tour which includes Russia, Portugal and France.

    China's Foreign Ministry official earlier said Chavez would meet with President Hu Jintao and other top officials to discuss an agenda dominated by energy cooperation. She also said the sides would sign documents on cooperation in justice, sports, quality supervision, and other fields.

    China, a booming economy with huge energy needs, is Venezuela's second largest customer for oil after the United States. Chavez, an outspoken critic of U.S. foreign policy, has sought new markets to cut his country's reliance on the U.S.

    Chavez's visit to Moscow comes at a time of increased military cooperation between Russia and Venezuela. Russian strategic bombers visited Venezuela earlier this month and made a six-hour patrol flight along the South American coast. The show of force close to U.S. borders was condemned by Washington as a "dangerous game."

    On Monday, Russia also sent a naval task force on a tour of duty in the Atlantic, which includes joint naval drills with Venezuela in November.

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    Chavez eyes China, Russia, more on "strategic"-interest tour


    Hugo Chavez

    Related Newshttp://afp.google.com/article/ALeqM5...iFWPQsecs88WmQ

    CARACAS (AFP) — Leftist Venezuelan President Hugo Chavez on Sunday sets out on a tour he has said holds "great strategic interest," with stops in China, Russia, Cuba, Belarus, Portugal and France.

    "This is a trip of great strategic importance for us," Chavez said late Friday, stressing that the countries he plans to visit from September 21-27 "have great potential that we are joining to Venezuela's potential."

    While his official agenda has not been made public lawmakers approved the trip to "strengthen international relations with those countries and sign exchange and cooperation deals on economic, social and cultural matters."

    Chavez will first travel to close ally Cuba, and then to China, which Chavez calls a strategic ally, for the capitalization of a six-billion-dollar bilateral investment fund. He says Caracas will use it for "socialist productive projects."

    China is contributing four billion dollars and Venezuela two billion dollars, said Chavez, who is to meet with Chinese President Hu JinTao.

    While in China Chavez could firm up his announced plans to buy 24 K-8 Chinese training and combat planes, which could be part of Venezuela's air force next year.

    Chavez, a staunch foe of the US government, will then head to Moscow. Caracas in recent years has been broadening its military ties to Moscow, and Chavez backed Russia in the recent Georgian conflict.

    Last week, Russian supersonic Tu-160 heavy bombers for the first time flew training runs with Venezuela in an area of the Caribbean traditionally considered the US military's sphere of influence.

    Caracas and Moscow have naval maneuvers planned for the Caribbean in November or December.

    The Venezuelan leader will then travel to Belarus, and on to France, where he will meet with President Nicolas Sarkozy, who he refers to as a friend.

    On the last stop in Portugal, Chavez will sign agreements on housing and computer technology. Portugal is a partner in natural gas projects in Venezuela.

    Chavez will also purchase 50,000 prefabricated homes in Portugal, and is seeking to sign a deal to build a factory for prefab homes in Venezuela.

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    Chavez to meet Putin as Russia gives Venezuela major arms loan

    1 hour ago


    Vladimir Putin

    MOSCOW (AFP) — Moscow announced a billion-dollar loan to Venezuela to buy arms on Thursday amid Cold-War style tensions with Washington and ahead of a visit by the country's fiercely anti-US President Hugo Chavez.

    Chavez was scheduled to meet Prime Minister Vladimir Putin at 1600 GMT at his residence near Moscow, then travel to the Ural Mountains city of Orenburg to meet President Dmitry Medvedev on Friday, officials said.

    The trip, expected to focus on military cooperation and trade, is Chavez's third visit to Moscow since June 2007 and comes three days after Russia sent a massive naval fleet to the Caribbean for joint exercises with Venezuela.

    In the latest sign of closer ties, a Kremlin source said Thursday that Russia had granted Venezuela the one-billion dollar (682-million euro) loan to Venezuela to buy Russian arms.

    "Russia has taken the decision to grant Venezuela a credit of one billion dollars for implementing programmes in the field of military-technical cooperation," the source said, using diplomatic jargon for arms sales.

    Venezuela has been asking for the loan for months, according to Russian media reports.

    Chavez's visit comes as Russia's relations with the United States are in a deep chill because of Russia's war with Georgia last month -- a conflict where Chavez was one of the few world leaders to support Moscow.

    "We particularly note the support of Venezuela in Russia's operation for forcing peace on Georgia after Tbilisi's August aggression against South Ossetia," the Kremlin source said.

    The Kommersant daily reported that Chavez was expected to make a statement supporting Russia's military action against Georgia, citing a source in the Venezuelan president's delegation.

    But Chavez was likely to stop short of joining Russia in recognising the independence of Abkhazia and South Ossetia, two separatist regions of Georgia that were at the heart of the conflict, Kommersant said.

    Chavez and Medvedev may observe Russian army exercises taking place in Orenburg, Kommersant reported, an event that would emphasise the growth in military cooperation and arms trading between the two countries.

    In deployments not seen since the Cold War, Russia this month sent two long-range bombers to Venezuela for exercises and has dispatched a flotilla of warships from the Arctic base of Severomorsk to Venezuela, near US waters.

    Venezuela has signed 4.4 billion dollars' (three billion euros') worth of contracts to buy Russian arms since 2005, according to the Kremlin.
    It has bought fighter jets, tanks and assault rifles, and Kommersant reported last week that it was planning to purchase anti-aircraft systems, armoured personnel carriers and more combat aircraft.

    Chavez could also discuss broader economic cooperation with Russia, including the creation of a Russian-Venezuelan bank and business opportunities for Russian energy giant Gazprom in Venezuela, Kommersant reported.

    Trade turnover between the two countries was 1.1 billion dollars (750 million euros) in 2007, more than double that of 2006, the Kremlin said.

    Kommersant said Chavez's hastily-planned visit was linked to campaigning in upcoming local elections in Venezuela and would allow the leftist firebrand to stress his alliance with Moscow against Washington.

    Venezuela, which is to hold local elections in November, expelled the US ambassador to Caracas earlier this month in what Chavez said was an act of solidarity with Bolivia, which also expelled its US envoy.

    http://afp.google.com/article/ALeqM5...GJA_zjPpJ4IGIw

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    Default A Nuclear Central America?

    News Europe

    Putin and Chavez in nuclear talks
    UPDATED ON:
    Thursday, September 25, 2008
    22:43 Mecca time, 19:43 GMT

    Chavez has called on Moscow to help lead a worldwide revolution against the US [AFP]
    Vladimir Putin, Russia's prime minister, has said he wants to look at nuclear co-operation with Caracas, after meeting Hugo Chavez, Venezuela's president, at his residence on the outskirts of Moscow.

    Putin said: "We are all ready to look at the possibility of operating in the sphere of peaceful atomic energy."

    Earlier on Thursday, Moscow had announced a $1bn loan to Venezuela to buy arms.

    Following the talks with Putin, Chavez will travel to the city of Orenburg, near Kazakhstan, to meet Dmitry Medvedev, Russia's president, on Friday.

    The Venezuelan president's trip, which is expected to focus on military co-operation and trade, is his third visit to Russia since June 2007.

    It comes just three days after Russia sent a massive naval fleet to the Caribbean for joint exercises with Venezuela.

    Moscow has been stepping up its relations with Venezuela in a pointed response to Washington's support for Georgia and other aspects of what the Kremlin sees as United States encroachment near its borders.

    According to Russian media reports, Venezuela has been asking for an arms loan from Moscow for months.

    Chavez's latest world tour is taking him to several countries whose governments are eager to limit the influence of the US.

    His trip to Russia followed talks in China, with Hu Jintao, the country's president.

    Growing alliance
    Russia's Kommersant daily newspaper reported on Thursday that the visit was part of the run-up to local elections in Venezuela and that Chavez would use the trip to stress his alliance with Russia against the US.

    Chavez and Medvedev are expected to observe Russian army exercises taking place in Orenburg, Kommersant reported, an event that would emphasise the growing military ties and arms sales between the two countries.

    Earlier this month, in deployments not seen since the Cold War, Russia sent two long-range bombers to Venezuela for exercises and has dispatched a flotilla of warships from the Arctic base of Severomorsk to Venezuela near US waters.

    Venezuela has bought Russian fighter jets, tanks and assault rifles and is planning to purchase anti-aircraft systems, armoured personnel carriers and more combat aircraft, Kommersant reported earlier, quoting Russian officials.

    During his visit to Russia, Chavez is also expected to make a statement supporting Russian military action against Georgia last month.

    US-Russia relations are at one of their lowest points since the end of the Cold War because of tensions over Russia's conflict with Georgia and US plans to site missile defence facilities near Russia's borders.

    Venezuela, which is to hold local elections in November, expelled the US ambassador to Caracas earlier this month in what Chavez said was an act of solidarity with Bolivia which also expelled its US envoy.

    After his visit to Russia, Chavez is due to visit France and Portugal as part of an international tour that has already taken him to China and Cuba.

    Neave Barker, Al Jazeera's correspondent in Moscow, said: "The relationship between Venezuela and Russia has been good now for a number of years.

    "But the [arms deal] does appear to time specifically to the wake of that war between Russia and Georgia. A pointed attempt perhaps ... to send a clear signal to the United States against their support for Georgia."

    Modernisation plans
    Meanwhile, Medvedev said on Thursday that Russia's plans to modernise its armed forces will not be affected by the global financial crisis.

    "Regardless of any crisis we should build new submarines, should simply deal with the modernisation of the armed forces," Medvedev told the crew of St George the Victor nuclear submarine during a visit to its Pacific home base at Kamchatka Peninsula.

    "Our country has means and resources for that," he said in comments showed on national television.
    Putin made the revival of the armed forces, neglected in the first post-Soviet decade, a symbol of Russia's resurgence and an additional argument in Moscow's foreign policy.

    Medvedev has said the recent war in Georgia showed Russia needed to equip its army with more advanced weaponry and Putin has said the military budget will grow by 28 per cent next year.
    http://english.aljazeera.net/news/eu...282265489.html

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    Default Re: Comrades In Arms

    Putin offers nuclear energy help to Chavez

    Thu Sep 25, 2008 4:23pm EDT
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    (Updates throughout)
    By Christian Lowe and Oleg Shchedrov

    NOVO-OGARYOVO, Russia, Sept 25 (Reuters) - Russia said on Thursday it was ready to consider helping Venezuela develop a peaceful nuclear energy programme, a gesture that will displease Washington as two of its sharpest critics draw closer.

    "We are all ready to look at the possibility of operating in the sphere of peaceful atomic energy," Prime Minister Vladimir Putin said as he welcomed Venezuelan President Hugo Chavez for late-evening talks at his residence on the outskirts of Moscow.

    Nuclear energy is a sensitive issue between the United States and Russia, which this week forced the scrapping of an international meeting to discuss sanctions against Iran over its atomic programme.

    Russia has stepped up cooperation with Venezuela, an arch-foe of Washington, since coming under strong U.S. condemnation for fighting a war against Georgia last month.

    Russia this month sent strategic bomber planes on a trip to Venezuela, their furthest mission since the Cold War. Though capable of carrying nuclear missiles, they did not do so.

    Putin noted that Russia also has warships en route to the Caribbean for joint military exercises between the two nations.
    The manoeuvres represent a show of strength in the United States' backyard, and a pointed rejoinder to the deployment of U.S. naval vessels in the Black Sea, where they delivered humanitarian aid to Georgia.

    "FRIEND VLADIMIR"
    Chavez -- who called Putin "friend Vladimir", shook hands warmly and shared a joke with him -- hopes to deepen military ties during his two-day visit. Putin said Russia was ready to consider further arms sales to Venezuela, adding that Moscow was paying greater attention to the entire region.

    "Latin America is becoming a very important link in the chain of the new multi-polar world that is taking shape and we will pay more and more attention to this direction of our economic and foreign policy," he said.

    In the past two years, 12 arms contracts worth a total of $4.4 billion have been signed by Russia and Venezuela, a Kremlin source said.

    Russia has also decided to offer Venezuela a $1 billion credit to buy more arms, the source said. Russian news agencies have said the oil-rich country showed interest in buying submarines, anti-aircraft weapons and military planes.

    The United States and the European Union are reliant on oil and gas imports from Venezuela and Russia, another sphere in which Putin announced further cooperation.
    "I am very pleased to note the launch of the first Gazprom (GAZP.MM: Quote, Profile, Research, Stock Buzz) drilling rig in the Venezuelan gulf is planned for the end of October," Putin said.

    The Kremlin source said cooperation in the energy and mining sectors would also be a major topic during the talks. Russian energy and mining majors such as Gazprom, Lukoil (LKOH.MM: Quote, Profile, Research, Stock Buzz), TNK-BP TNBPI.RTS and Rusal are already operating in Venezuela.

    "Cooperation in the energy sector and mining remains the top priority in the economic cooperation," the source said. (Writing by Conor Sweeney; Editing by Mark Trevelyan)

    © Thomson Reuters 2008 All rights reserved

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    Default Re: Comrades In Arms

    Russia Offers Venezuela's Chavez Weapons, Nuclear Cooperation
    By Sebastian Alison and Henry Meyer

    Sept. 25 (Bloomberg) -- Russia offered visiting President Hugo Chavez of Venezuela $1 billion in credit to buy weapons and nuclear cooperation amid worsening relations between both nations and the U.S.

    ``We are ready to implement all our accords in the military sphere,'' Russian Prime Minister Vladimir Putin said as he met Chavez at his residence outside Moscow late today. He told him that Russia was also ready to consider cooperation with Venezuela in atomic power in addition to high-technology and energy.

    Chavez, in Russia for the second time in two months, announced before the talks that OAO Gazprom, OAO Lukoil and TNK- BP, three of Russia's biggest energy companies, may join with Petroleos de Venezuela SA to work on projects around the world.

    His visit comes as Russian warships sail to the Caribbean Sea for joint exercises with the Venezuelan navy, and shortly after two Russian Tupolev-160 strategic bombers returned to Russia from a brief training visit to the South American nation. Russian relations with the U.S. have soured over Russia's war with U.S. ally Georgia last month.

    Venezuela is leading a drive to push back historic U.S. influence in Latin America.

    Chavez will travel from Moscow to Orenburg, near the Kazakh border in southern Russia, to hold talks with President Dmitry Medvedev tomorrow.

    Russia has been stepping up efforts to court anti-U.S. allies in Latin America since the conflict with neighboring Georgia, sending high-level delegations to Cuba, Nicaragua and oil-rich Venezuela.

    Role to Play
    Chavez said that Russia has a role to play in defending ``freedom in Latin America.'' Putin replied that the region is ``of course very important in a multipolar world and we are moving more and more toward this vector.''

    Ahead of the Venezuelan leader's arrival, the Kremlin announced that Russia had agreed to issue a $1 billion credit line to Venezuela for ``the realization of military-technical cooperation programs,'' using a term that Russian authorities employ to describe defense sales.

    Venezuela spent $4.4 billion on 12 contracts for Russian weapons from 2005-2007, the Kremlin said. These include deals to buy 100,000 Kalashnikov rifles, 50 military helicopters and 24 Su-30 jet fighters, according to a U.S. Defense Intelligence Agency report.

    Russia is now in talks to sell air defense systems, armored personnel carriers and new-generation Su-35 fighter jets due to start production in 2010, the Kommersant newspaper reported on Sept. 18, citing state industrial holding company Russian Technologies chief Sergei Chemezov.

    Getting Credit
    Venezuela's insistence on getting credit toward buying these weapons, as well as Russian diesel submarines that it is seeking, had been holding up the negotiations, Kommersant said.

    Venezuela's defense budget has more than tripled since 2000 to 7.12 billion bolivars ($3.3 billion) in 2008, according to the National Budget Office.

    Chavez's biggest purchases came in 2006. In that year alone, he signed deals for $3.1 billion in weapons. Russia agreed to establish a factory in Venezuela for the production of both AK- 103 assault rifles and 7.62mm ammunition for more than $500 million, according to a report by the U.S. Congressional Research Service.

    Chavez said the idea for establishing a consortium for energy cooperation had come from Russian Deputy Prime Minister Igor Sechin, who led the delegations to Latin America earlier this month.

    Across the Globe
    ``This will be the biggest consortium in the world,'' Chavez said in a live telephone call to Venezuelan state television, adding that it would operate in countries across the globe.

    In July during the Venezuelan leader's last visit to Russia, Gazprom, Lukoil and TNK-BP signed agreements with state-owned Petroleos de Venezuela SA on joint exploration of oil fields in Venezuela.

    Chavez has called Russia the guarantor of a ``multipolar world.'' Earlier this month he expelled the U.S. ambassador to Caracas as Venezuelan-U.S. relations worsened.

    He's also given verbal support for the independence of Abkhazia and South Ossetia, two breakaway regions of Georgia that have been recognized by Russia and Nicaragua alone after the five-day Russian-Georgian war. Chavez has stopped short of full recognition.

    To contact the reporters on this story: Sebastian Alison in Moscow at Salison1@bloomberg.net; Henry Meyer in Moscow at hmeyer4@bloomberg.net

    Last Updated: September 25, 2008 15:27 EDT
    http://www.bloomberg.com/apps/news?p...=latin_america

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    Default Re: Comrades In Arms

    Medvedev moves to rebuild army


    President Dmitriy Medvedev tallied the pluses and minuses of Russia’s armed forces.


    President Dmitriy Medvedev welcomed Hugo Chavez in Orenburg and observed Russia’s most wide-scale military training in over 20 years

    KP.RU, Yelena KRIVYAKINA. Photo: Anatoliy ZHDANOV — 27.09.2008
    [читать оригинал на русском]
    Hugo passes “Hello” from Putin to Medvedev

    Just over two months passed since President Dmitriy Medvedev met Venezuelan President Hugo Chavez in Moscow. This week, Chavez headed to Orenburg to meet with Medvedev who observed the Center-2008 military training. Chavez arrived yesterday at dawn. Before his arrival, he stopped briefly in Moscow en route from Beijing where he held negotiations with long-time friend, Prime Minister Vladimir Putin.

    "I’m bringing you a ‘hello’ from Fidel Castro, Raul Castro… and Vladimir Putin,” Chavez said as he greeted the Russian president.

    "That deserves a special thanks,” Medvedev said laughingly. He also thanked Chavez, who he called “Dear Hugo,” for welcoming Russia’s strategic Tu-160 bombers to the military aerodrome last week in Caracas, Venezuela. Medvedev said large-scale Russian-Venezuelan naval trainings would be held in late November. He also expressed his appreciation for Venezuela’s support during the crisis in the Caucasus.

    "We know the reasons for the conflict well,” Chavez said. “We know how innocent civilians were attacked in South Ossetia. I would like to take this occasion to offer our full, modest but completely solid support for Russia's actions." The Venezuelan leader noted the meeting with Medvedev was timely given the international economic crisis.

    "This morning I read a statement by the president of the International Currency Fund," Chavez said "The financial crisis in the U.S. is horrible and it’s difficult to comprehend what the repercussions could be. Thank God Russia and other countries are developing mechanisms that allow them to remain less affected by the crisis. Fortunately, we will forestall the crisis and it won’t catch us.”

    After the negotiations, the delegations of the two countries signed an energy partnership agreement to develop a joint oil and gas consortium to invest in new fields. Russia and Venezuela will establish a joint bank for financing energy and industrial projects. After their meeting, Chavez flew to Paris to meet French President Nicolas Sarkozy. Medvedev took а helicopter to the Dongus Polygon 65 kilometers outside Orenburg to observe the military training.

    "A war could erupt suddenly..."
    Medvedev watched closely as the battle unfolded at the Dongus Polygon. The Su-27 fighters showed their prowess -- fearlessly destroying the enemy -- as the Su-27 reconnaissance planes and MiG-31 jets circled above. Missiles and shells exploded on the earth, while tanks entered the combat zone. Forty-seven thousand soldiers participated in the training -- Russia’s largest-scale training in 20 years.

    At a subsequent meeting with the country’s military elite, Medvedev noted the successful maneuvers during combat, and recalled the conflict in the Caucasus.

    "The events in South Ossetia have only strained the urgency to solve these issues,” Medvedev said. "They have shown a war can break out unexpectedly.”

    Afterwards, Medvedev listed several changes that must be made to Russia’s armed forces. The president announced that he had approved the composition of Russia’s army until 2020. He explained 5 factors that must be developed to effectively solve combat issues.

    1. Improving the organizational and staffing structure and troop support system.
    2. Increasing the effectiveness of the armed forces management system.
    3. Improving personnel training, military education and military sciences.
    4. Russia needs an army equipped with the most modern weapons.
    5. Appropriate living conditions for the armed forces.

    Medvedev noted the need for a "guaranteed nuclear deterrent system" by 2020. The president also promised wide-scale warship and nuclear submarine construction, as well as plans to build an air and space defense system.

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    Default Re: Comrades In Arms

    An axis of petro tyrants
    Arthur Herman | October 01, 2008


    IN October 1962, the US discovered that Soviet warships had installed nuclear missiles in Cuba. The result was the Cold War's most dangerous crisis until the Russians backed down. This November, 46 years later, Russian warships will be back in those same Caribbean waters, this time at the invitation of South America's most dangerous dictator, Venezuelan President Hugo Chavez, for joint exercises with his navy.

    No one expects this to be a crisis of 1962 proportions. Venezuela's navy packs less wallop than the New York Yacht Club, and the Russian fleet is a shadow of its Cold War self. Only four ships will be going to Venezuela. State Department spokesman Sean McCormack quipped the wonder is the Russians "can find a few ships that can make it that far".

    But don't be fooled by the bravado. Small though they are, these exercises are a stark challenge to US interests in South America and the Caribbean. They mark a big step in Chavez's bid to become the leading power in the southern western hemisphere. They also put the seal on Russia's aggressive re-emergence on the international scene in eastern Europe and Asia, and now in the western hemisphere.

    Unlike in 1962, no nuclear weapons are coming to the party (at least as far as we know). But the lead Russian ship, the nuclear-powered 19,000-tonne cruiser Peter the Great, is one of the largest and deadliest missile cruisers afloat. It can deliver a volley of 20 500-kilotonne nuke warheads with its Granit long-range missile system. Pravda reports that Russian strategic bombers also will be free to use Venezuelan airfields during the exercise.

    No aircraft carriers are slated to take part. But Vladimir Putin will be pouring his petro roubles into building a new 50,000-tonne carrier in 2010, as Russia's navy prepares for a glorious new era of projecting power across the world.

    Oil-rich Venezuela has been conducting a similar military build-up, ostensibly to defend himself against "Yanqi imperialism", in fact to intimidate its neighbours.

    It's no coincidence that Chavez has used most of Venezuela's weapons budget to buy planes, submarines and missiles from Russia, including a bevy of SU-35 fighter jets. These two countries see a clear convergence of interests. In July, Chavez even went to Moscow to sign a strategic alliance with Putin and Russian President Dmitry Medvedev, openly directed against the US.

    Both countries see fossil-fuel revenues as the key to their prosperity and power, as does the third power in this emerging petro-power axis, Iran. All want monopolistic control over the oil and natural-gas resources in their respective regions.
    In Iran's case, that means getting nukes in order to dominate the Persian Gulf, the world's lifeline for access to Middle East oil.

    For Putin, it means gaining control over Georgia and its vital oil pipeline. For Chavez, the key to regional dominance has been building up Marxist allies in natural resource-rich neighbours such as Bolivia and Ecuador.
    All three regimes also recognise that the US is the one power with the will and capacity to stand in their way.

    If, in these next eight weeks, Chavez can force the US to acquiesce to his new strategic ties to Russia, with the US Navy helplessly standing by as Venezuelan and Russian warplanes and ships practise crushing a mock US invasion for the benefit of the world media, then he'll be one step closer to making the Caribbean a Venezuelan lake. And Putin will be one step closer to making Russia a player again in the western hemisphere.

    The Russian Defence Ministry dismissed a July report in the newspaper Izvestia that the Russian Air Force hopes to get permission from Raul Castro to base long-range bombers in Cuba.

    All in all, however, Russia is telling Latin America: We're back and we're not going to let the US push us out again.

    The end of this northern summer has brought the end of many things. Wall Street came to an end last week, with the financial meltdown. The Bush Doctrine came to an end on Tuesday, with President George W. Bush's lacklustre speech at the UN endorsing multilateral diplomacy instead of firm action for curbing rogue states.

    In a month or two, we will learn if the Monroe Doctrine is headed the same way.

    Arthur Herman's latest book is Gandhi and Churchill: The Epic Rivalry That Destroyed an Empire and Forged Our Age.

    http://www.theaustralian.news.com.au...2-7583,00.html

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    Default Re: Comrades In Arms

    Venezuela's Chavez Calls for Creation of An Oil Bank

    by Raul Gallegos Dow Jones Newswires Tuesday, September 30, 2008
    CARACAS (Dow Jones Newswires), September 30, 2008

    Venezuela's President Hugo Chavez on Tuesday called for oil producing countries to create an oil bank and warned oil prices could fall further.

    "We once proposed the creation of an OPEC Bank...but it wasn't adopted. Lets work with the idea of an oil bank, a couple of oil (producing) countries can do it," Chavez said as he arrived in Brazil for a state visit.

    The president gave no details of how this bank would work but insisted it was a needed idea.

    Chavez also acknowledged falling oil prices and said he believed they would stabilize soon.

    "We expect (the price) to stabilize between $80, $90 and $95 a barrel," he said.

    His administration has lately defended the idea of a price for West Texas intermediate crude at $100 a barrel, a price level the Andean country promoted during the September meeting of the Organization of Petroleum Exporting Countries in Vienna.

    Copyright (c) 2008 Dow Jones & Company, Inc.


    http://rigzone.com/news/article.asp?a_id=67287

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    Default Re: Comrades In Arms

    Venezuela Will Buy Russian Tanks




    Venezuela is considering the purchases of Russian T-92 tanks and armored vehicles as part of a plan to increase the country’s defensive abilities. Venezuelan Gen. Jesus Gonzalez announced these plans after a meeting with Secretary of the Russian Security Council Nikolay Patrushev, the Associated Press reports. Gonzalez said Venezuela would determine the size of its order for tanks, airplanes, ships and helicopters the country needs. The country intends to place the order before the end of the year.

    Venezuelan President Hugo Chavez visited Russia on September 25 and 26 and signed agreements on partnership in the area of energy at that time, as well as confirming plans for Russian-Venezuelan naval exercises in November. Two Russian Tu-160 strategic bombers visited Venezuela earlier this year as part of military exercises. The Western press is calling the Russian-Venezuelan ties “friendship against the United States.” The Russian leadership claims, however, that relations with Venezuela are motivated by economic interests.

    http://www.kommersant.com/page.asp?id=-13410

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    Default Re: Comrades In Arms

    Venezuela offers Russians big gold projects

    06 Nov 2008 22:14:26 GMT
    Source: Reuters

    (Adds details, stock price movements, analyst quote, context) By Brian Ellsworth CARACAS, Nov 6 (Reuters) - Venezuela plans to build mines at its largest gold deposits with Russian help, the mining minister said on Thursday, apparently killing a years-long bid by two Canadian companies to develop the projects.

    The decision reflects leftist President Hugo Chavez efforts to boost ties with Russia, increase state control over a key sector and speed up stalled mining development as tumbling crude prices threaten to crimp the OPEC nation's finances.

    An accord will be signed on Friday with Russian-owned Rusoro to operate the Las Cristinas and Brisas projects with Venezuela, mining minister Rodolfo Sanz told a Russian government delegation during a presentation observed by Reuters.

    Rusoro's share price soared after the news.

    Las Cristinas, one of Latin America's largest gold projects, is currently operated by Canada's Crystallex , which waited in vain for years for an environmental license to start mining.

    Nearby Brisas is operated by Gold Reserve , which has a concession for the mainly gold project but was also waiting for environmental permits. While it appeared that Sanz will replace Crystallex and Gold Reserve with Rusoro, he did not mention their names.

    He said the memorandum would not mention Las Cristinas and Brisas by name for legal reasons but assured the Russians they would have access to the projects. "You can be sure that those will be the deposits," he told the delegation. "We have to rescind our relationship with a company that has been working in the zone," Sanz also said, apparently in reference to Crystallex. "We have a legal problem there."

    Approached after the presentation by Reuters, Sanz said Rusoro's involvement in Las Cristinas had not yet been decided. The statements came a day after Venezuela, which frequently warns against building reserves in U.S. dollars, said it wanted to recover control over its gold to boost its gold reserves as a shield from global financial crisis.

    Chavez in recent years has wrested control from the private sector of the oil, electricity and telecom industries. Rusoro's stock jumped by as much as 38 percent to C$0.65 following Thursday's news, while shares of Crystallex edged down. Gold Reserve shares were up slightly.

    A Crystallex spokesman told Reuters that Venezuelan officials have said the project remains on track.

    A Rusoro spokesman did not comment on the situation but said CEO George Salamis was on his way to Venezuela. Gold Reserve did not respond to requests for comment. HUGE GOLD MINE "I doubt (Crystallex) will roll over and say this is the end of it, but this is confirmation of what I always thought was going to be the ultimate end game," said Barry Allan, analyst at Research Capital in Toronto. Allan is one of several analysts who dropped coverage of Crystallex this year due to frustration over the permitting of Las Cristinas.

    Bringing Rusoro into the project adds a new twist to a decades-long saga over the development of the massive Las Cristinas reserves, which have passed through the hands of three other mining companies since the 1990s.

    Chavez offered Las Cristinas to Crystallex in 2002, prompting another Canadian mining company called Vannessa Ventures to file an international arbitration suit on the grounds it had the rights to operate the mine.

    Vancouver-based Rusoro currently operates the Choco 10 and Isidora Mines, and processes the ore through the Choco Mill facility, according to the company's website. Idaho-based Hecla Mining Company in June said it sold its Venezuela subsidiaries to Rusoro at a sizable loss.

    http://www.alertnet.org/thenews/newsdesk/N06416298.htm



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    Nikita Khrushchev: "We will bury you"
    "Your grandchildren will live under communism."
    “You Americans are so gullible.
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    Default Re: Comrades In Arms

    Russian leader Medvedev heading to Cuba, Venezuela

    Fri Nov 14, 6:40 am ET

    MOSCOW – Russian President Dmitry Medvedev plans to travel this month to Cuba and Venezuela, which have increasing military and trade ties with Moscow.

    The U.S. has objected to Russia's greater links with the two countries that have antagonistic relations with Washington.

    Medvedev will visit Cuba on Nov. 27, the Kremlin press service said. He will also visit Brazil during the trip.

    The Soviet Union was a stalwart supporter of Cuban leader Fidel Castro during the Cold War. Under Hugo Chavez, Venezuela has moved to buy millions of dollars in Russian weaponry and invited Russian energy giants to drill in the country's oil fields.

    A Russian naval flotilla is on its way to the Caribbean to hold joint military exercises with Venezuelan forces.

    http://news.yahoo.com/s/ap/20081114/..._medvedev_cuba

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    Nikita Khrushchev: "We will bury you"
    "Your grandchildren will live under communism."
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