Russia, Venezuela sign energy deals

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IANS/EFE | 05 Apr, 2010
Venezuela and Russia have bolstered bilateral ties during a visit to the South American country by Prime Minister Vladimir Putin. They have signed dozens of accords in a range of sectors, most notably defence and energy.

At the end of the ceremony in which several of the agreements were inked, Venezuelan President Hugo Chavez, who first took office in 1999, hailed the increase in bilateral cooperation with Russia during his presidency.

The different agreements signed Friday covered a range of sectors, including energy, defence, infrastructure, transportation, technology, agriculture, education, culture and industry.

"Vladimir Putin has helped shape a multipolar world and has contributed to the end of unipolar hegemony," Chavez said.

He added that both countries agree on the need to work for "the end of empires, so that a new world of progress, of social happiness, a world of peace emerges".

"Russia and Venezuela are on that path and we'll be more united every day," the Venezuelan leader said.

Putin said the goal is "to make the world more democratic, balanced and multi-polar" and highlighted the different accords signed on Friday, including ones regarding joint oil ventures in the vast Orinoco Belt of eastern Venezuela, particularly the Junin 6 block.

He said in that regard that an agreement was reached on the payment of $1 billion by a consortium of five Russian firms for the rights to help develop Junin 6. During the ceremony, Putin delivered Chavez an initial down payment of $600 million.

The Russian premier said that the boost given to bilateral relations by his first visit to Venezuela paves the way for "full cooperation" as an "antidote to global economic crises".

In the energy area, a letter of intent was signed for the involvement of Russia's National Petroleum Consortium in three other Orinoco blocks known as Ayacucho 2, Ayacucho 3 and Junin 3.

Both governments also signed several memoranda of understanding for the construction of gas and oil tankers; studies for the installation of an electricity plant; and cooperation in energy-planning projects.

Venezuela is suffering a severe electricity crisis that has led to forced cutbacks in consumption and prompted the government to make the entire Holy Week a national holiday.

Chavez has acknowledged a lack of timely investment in the electricity sector, but mainly blames the crisis on drought conditions resulting from the El Nino weather phenomenon.

One agreement signed Friday concerned the possible supply of Russian-made planes to Venezuela and other Latin American countries, while another called for defining the mechanisms for organising flights between Caracas and Moscow via Havana and Madrid.

Other accords concerned the purchase of some 2,000 Lada automobiles, scientific research programmes, cultural and university exchanges, the recognition and equivalency of documents and titles and stronger cooperation in agriculture.

Putin was presented with the Order of the Liberator, Venezuela's highest distinction, and a replica of South American independence hero Simon Bolivar's sword, while the two leaders also signed two statements related to the celebration of the bicentennial of Venezuelan independence and the commemoration of the 65th anniversary of the end of World War II.

In his speech, Chavez also said Russia was willing to help Venezuela build its first nuclear power plant, "obviously for peaceful purposes", as well as assist with development of a space programme, an area in which "Russia has a great deal of experience".

During Putin's visit, Venezuela received four Russian Mi-17 helicopters, the last of a batch of 38 choppers purchased in 2006, and Chavez also announced the purchase of at least one Beriev-200 (Be-200) hydroplane for fire fighting.

The Russian president arrived Friday morning in Venezuela, where he was received with military honours by Chavez at the Simon Bolivar International Airport, about 30 km outside Caracas.

After the ceremony, both leaders travelled to the nearby port of La Guaira and boarded the Russian training vessel Kruzenshtern.

The Russian leader returned to Russia Friday night after a brief meeting with Bolivian President Evo Morales, a close Chavez ally, in Caracas.