Putin Bolsters Nuclear, Oil, Defense Ties With Venezuela

[Ryan Ruck]

Putin Bolsters Nuclear, Oil, Defense Ties With Venezuela

April 3, 2010

Russian Prime Minister Vladimir Putin gave the United States' main Latin American foe, Venezuelan President Hugo Chavez, a needed boost with a brief visit on Friday to discuss oil, defense and nuclear energy cooperation.

They launched a $20 billion venture between Russian firms and Venezuelan state company PDVSA aimed at pumping 450,000 barrels a day -- almost a fifth of the OPEC member's current output -- from the vast Orinoco heavy oil belt.

Russia also delivered the last four of 38 military transport helicopters, but no new defense agreements were signed, though Chavez said Moscow was open to help Venezuela develop nuclear energy for generating electricity.

"We are prepared to begin drawing up the first project for a nuclear power generator, obviously for peaceful purposes," Chavez said at a news conference with Putin.

"We are not building an alliance against the United States. () We don't care what Washington thinks," Chavez said, adding that he would continue to make "modest" arms purchases from Moscow that were the minimum needed for Venezuela's defense.

Putin's 12-hour visit provides a welcome lift for Chavez, who is facing domestic and international criticism for failing to solve Venezuela's economic woes and attempting to silence opposition to his 11-year rule.

Putin also held talks in Caracas with Bolivian President Evo Morales, along with Chavez the fiercest opponent of what they call U.S. "imperialism" in Latin America.

Facing a national electricity crisis that has caused widespread outages, Chavez's government is turning to Iran and Russia for help to develop nuclear power.

Venezuela, South America's top oil exporter and a major U.S. supplier, has also expanded military ties with Russia under Chavez, who says the United States could attack Venezuela for its oil reserves.

Since 2005, Venezuela has bought about $5 billion worth of Sukhoi jet fighters, Mi-17 helicopters and Kalashnikov assault rifles. Chavez received $2.2 billion in credit lines for more Russian arms during his eighth visit to Moscow in September, including T-72 tanks and the S-300 advanced anti-aircraft missile system.

U.S. Secretary of State Hillary Clinton expressed concern last year that the Russian weapons purchases by Venezuela could trigger an arms race across Latin America.

Chavez says his growing arsenal is aimed at countering a planned increase in the U.S. military forces at bases in neighboring Colombia, Washington's closest ally in the region.

ORINOCO OIL VENTURE

The highlight of Putin's visit was the rolling out of the joint venture to develop the Junin 6 field in the Orinoco, which will require $20 billion in investments over 40 years.

Venezuela expects the venture to begin producing 50,000 barrels a day by the end of the year.

To boost its sagging output from traditional wells, Venezuela needs foreign investment and technology to tap the heavy oil of the Orinoco belt that requires much upgrading to turn into lighter crude.

The Russian consortium involved in Junin 6, state giant Rosneft, private major Lukoil, Gazprom, TNK-BP and Surgutneftegaz, paid Venezuela the first $600 million tranche of an agreed $1 billion signing fee on Friday.

PDVSA holds a 60 percent stake in the project. The Russian firms are also in talks to create joint ventures to develop three more Orinoco blocks, Junin 3 and Ayacucho 2 and 3.

Chavez hopes Russian cooperation will reach as far as the space industry. "We could even install a satellite launcher," he said at a televised cabinet meeting on Thursday.

The U.S. State Department scoffed at Chavez's space plans, pointing out that Venezuela was so short of electricity the government had extended the Easter holiday for a full week.

"Perhaps the focus should be more terrestrial than extraterrestrial," said spokesman P.J.Crowley.

[vector7]

Russia to help Venezuela build nuclear power station

By the CNN Wire Staff
October 15, 2010 11:44 a.m. EDT


Russian President Dmitry Medvedev meets his Venezuelan counterpart Hugo Chavez in Moscow, October 15, 2010.

STORY HIGHLIGHTS

• Russia plans to help Venezuela build a nuclear power station
• The two countries signed an agreement to that effect Friday
• Medvedev says "our intentions are absolutely pure and open"

RELATED TOPICS

• Russia
• Venezuela
• Nuclear Energy

Moscow, Russia (CNN) -- Russia plans to help Venezuela build a nuclear power station, Russian President Dmitry Medvedev said Friday.

The two countries signed an agreement on the construction during Venezuelan President Hugo Chavez's visit to Russia.

They reached the agreement in April, after Russian Prime Minister Vladimir Putin visited Venezuela.

"I don't know who might wince from this news," Medvedev said at a news conference. "The president (Chavez) said that there are countries which may have different feelings about it. But I'd like to say that our intentions are absolutely pure and open."

Medvedev said Russia sees atomic energy cooperation as one of its international priorities and builds nuclear power stations around the world.

In addition to helping Venezuela build the nuclear power station, Russia will build a research reactor to produce isotopes for peaceful industries and medicine, according to the text of the agreement.

Russia and Venezuela have increased their cooperation on a number of fronts in recent years. Chavez has visited Russia nine times. He said after a visit last year that his country had purchased weapons, including rockets, from Russia.

"We are not going to attack anyone," Chaves said then. "Those are only defense instruments because we are going to defend the nation from any threat, from wherever it comes."

Last year, Russia approved $2.2 billion in credit to Venezuela to finance arms purchases. The credit was for the purchase of 92 Soviet-era T-72 tanks and short-range missiles with a 55-mile (90-kilometer) reach, and Venezuela also planned to purchase an anti-aircraft weapons system with a range of 185 miles (300 km).

News of the arms deal raised concerns in the United States, where a State Department spokesman said in 2009 that Venezuela's desire to increase its arsenal poses a "serious challenge to stability in the Western Hemisphere." This year, however, State Department spokesman Philip Crowley said Venezuela's ambition to increase its arsenal, while suspicious, is an issue "between Venezuela and Russia."

"We don't care. ... Our primary concern is not if Venezuela wants to acquire ... this equipment," he said. "Our primary concern is that if Venezuela is going to increase its military hardware, we certainly don't want to see this hardware migrate into other parts of the hemisphere."

In September 2009, Chavez announced while in Russia that Venezuela would recognize as independent republics Abkhazia and South Ossetia, becoming just the third country, after Russia and Nicaragua, to do so.

Russia generally has backed independence for the two regions.

Nearby Georgia, which fought a war with Russia in 2008, opposes independence for the two regions.

Chavez also met last year with Medvedev and Putin to negotiate and sign new oil and gas contracts between their countries.

[American Patriot]

"I don't know who might wince from this news," Medvedev said at a news conference. "The president (Chavez) said that there are countries which may have different feelings about it. But I'd like to say that our intentions are absolutely pure and open."

I just wanted to highlight how kind and peaceful the Commies...er I mean Russians are....

[American Patriot]

It seems amazing to me now that so many chose to ignore the obvious conclusion that Venezuela is the newest neo-communist state and her revolutionary downfall is largely patterned after that of Fidel Castro's Cuba.

Listen, Michael, you would be absolutely, completely taken aback by the number of mis- and ill-informed people on this planet - and in fact, JUST in "my world".

I live in a world where everyone is either military, former military, spokes, former secret service, FBI and space contractors. Many of my friends are government people, a vast number of them used to be.

In my daily dealings with people there's a small, very select group that "Gets It". Almost all of them have given up trying to explain it to colleagues because they don't comprehend what is going on around them, let alone the rest of the world.

Most of the people can't put together a few pieces of data and work out the puzzle. Those of us that can are viewed suspiciously because we take the time to understand and step away from the tiny microworld in which each of us live.

The Russians, I suspect won't do the nuke thing either. If that happens they will certainly be involved, but it will be limited to taking out most of our electrical systems.

This is ECONOMIC WAR right now... and we're going to lose from everything I've been reading.