Russian President Praises Investment Opportunities in Venezuela
Mérida, October 23, 2007 (venezuelanalysis.com)-
Russian President Vladimir Putin deems Venezuela one of the countries with the
best prospects for Russian investment. Putin made the comment during a meeting
with his cabinet on Monday. Accordingly, Russia has been looking to increase
involvement in the Venezuelan oil sector as well as other bilateral projects
over the last two years. Venezuelan President Hugo Chavez also expressed his
satisfaction about the growing relationship and stated that a delegation from Russia would be
visiting the country this week to sign more cooperation agreements.
"Actually, [Venezuela]
is one of the countries with the most perspectives from the point of view of
joint ventures in the economic sphere," said Putin to his ministers on
Monday, according to a Russian news agency.
Putin pointed out that Russian companies have "many opportunities" in
Venezuela
and spoke specifically about investment in energy, manufacturing, and machinery
construction. The statements were made in the presence of Russian Vice
President Alexander Zhukov, who will travel to Caracas
this week to discuss the bilateral projects in Venezuela.
"There is a lot of interest in our business circles about the projects in Venezuela,"
said Zhukov. "Our companies cooperate actively in the sphere of oil and
gas extraction."
Zhukov emphasized the potential prospects in the construction of the Gas
Pipeline of the South. This project, promoted by the Venezuela president, would be the construction
of a 10,000-kilometer natural gas pipeline from Venezuela
through the Brazilian Amazon and extending south to Argentina. Its estimated cost would
be around US$ 23 billion, and would transport 150 million cubic meters of
Venezuelan gas per day from the Caribbean Sea to Argentina.
"Gazprom (the Russian natural gas company) is already participating in the
negotiations," said the vice president.
The Russian Foreign Minister Serguei Larov also expressed today the growing
interest of his country in Latin America,
stating that the commercial exchange with the region surpassed 7 billion Euros
in 2006. He stated that Gazprom is involved in "big projects" in the
natural gas sector and is studying the creation of a joint company between
Gazprom and the Venezuelan state-owned PDVSA.
In addition, Larov said Gazprom is interested in participating in the
construction of transportation systems, petrochemicals, and natural gas
condensation for sale on national and international markets.
Although much interest has been focused on the extraction of oil and gas
reserves, there are also projects in other sectors, including plans to set up a
plant to assemble the Russian brand of trucks, Kamaz.
"There are also serious plans in the aluminum sector," said Zhukov.
"Venezuela
wants our companies to provide investment and technology."
The Russian vice president is expected to arrive in Caracas on Wednesday together with a
delegation of Russian businessmen as a part of the Russian-Venezuelan Bilateral
Commission. Venezuela
President Hugo Chavez announced the visit on Sunday and showed his satisfaction
with the increasing economic relationship.
"The Russian vice president and more than 60 government officials and
businessmen are coming and they will be here all week," he said. "We
will sign new cooperative agreements in energy and industry."
On Monday, representatives from the financial sectors of both Russia and Venezuela
met in Caracas
to discuss the possibility of creating a joint banking institution to
facilitate the commercial relationship between the countries. Venezuelan
Ambassador to Russia,
Alexis Navarro, stated that the Russian government is very interested in
consolidating the bank and assured its importance in financing new joint
projects.
Chavez has emphasized the importance of these types of bilateral funds in
promoting productive investment in the country. Similar funds are being set up
with other countries such as China
and Iran to finance
cooperative projects with Venezuela.