Russia and Venezuela Sign Nuclear Energy Accord During Historic Presidential Visit
Caracas, November 27th, 2008 (Venezuelanalysis.com)--Russian President Dimitri Medvedev became the first Russian president ever to visit Venezuela on Wednesday.
As a Russian naval fleet arrived in Venezuela to carry out joint exercises with the Venezuelan navy, Medvedev and Venezuelan President Hugo Chavez advanced an array of joint energy projects, agreed to cooperate to stabilize the price of oil, and discussed the possibility of Russian participation in the Venezuela-led trade group called the Bolivarian Alternative for the Americas (ALBA).
Medvedev, in the Venezuelan presidential building, Miraflores, said, “Venezuela is considered one of our most important business partners in Latin America.”
Russia’s accords with Venezuela are “not a cultural relationship, nor are they aimed at any third party,” said Medvedev. “The relationship is based on association, in the pragmatic understanding of the actual situation.”
Chavez made reference to Russian history. “We value the resurgence of the great Russian fatherland. You were born during a crisis, and you experienced a disaster, and suffered imperialist and fascist aggressions. And now Russia is back on its feet, playing the role it must play in the twenty-first century,” said the Venezuelan president.
The naval accords include Russian training of the Venezuelan navy and assistance in repairing and upgrading Venezuelan fleets.
Luis Márquez, the commander of the Venezuelan Navy, said there is no intention of firing artillery during the joint exercises with Russia, and that the Russian ships “do not carry nuclear weapons, but rather a nuclear propulsion system.”
The naval cooperation comes six months after the United States Southern Command re-activated its Fourth Fleet, which had been inactive for half a century, to patrol Latin American waters.
Venezuela plans to build a new naval base on its island state, Nueva Esparta, for national defense and to combat drug trafficking.
The Russian president said that even though his administration is not a member of the Organization of Petroleum Exporting Countries (OPEC), it would cooperate with OPEC nations such as Venezuela to stabilize the price of oil. Chávez advocated the elimination of speculative intermediaries in the oil supply chain.
Chávez and Medvedev also discussed the possibility of Russian participation in ALBA, but did not specify in what manner Russia would be involved. ALBA member countries include Venezuela, Cuba, Nicaragua, Bolivia, Dominica, and Honduras.
“If this will be useful for the development of Latin American states, if it corresponds to our vision of a multi-polar world… then why not?” said Medvedev.
“We have also approached China in the name of ALBA, and now Russia… I am sure that in the future we will be able to establish connections,” President Chávez commented.
Consistent with statements last week that Venezuela plans to build a nuclear reactor with Russian assistance, Chávez and Medvedev signed a cooperation accord on Wednesday to develop nuclear energy for peaceful purposes in Venezuela.
Over the past six months, Venezuela and Russia have significantly expanded their alliance.
The Venezuelan state oil company, PDVSA, and Russia’s Gazprom, along with four other Russian energy firms, formed a joint energy company last month, and initiated the exploitation of natural gas off the Venezuelan coast.
This was in addition to a previously formed mixed enterprise, in which PDVSA controls the majority 60% stake, to extract oil from Venezuela’s Orinoco Oil Belt.
Venezuela also indicated earlier this month that it intends to nationalize its strategic minerals such as gold, and grant gold mining concessions to Russian firms.
Venezuela has spent $4.4 billion on Russian weapons and military equipment since 2005, and in September Russia approved a $1 billion loan to Venezuela for future arms purchases. Chávez said the upgrades are for national defense, and that Venezuela turned to Russia partially because the U.S. cut off military equipment sales to Venezuela.
The two nations have also signed accords to guarantee mutual investments in an array of industries including the automobile sector, facilitate visa processing, and expand commercial flights between Moscow and Caracas.
On his current Latin American tour, the Russian president has visited Peru and Brazil, and plans to visit Cuba. Brazil, Russia, India, and China plan to hold a summit in Russia next year.
The U.S. government has criticized Venezuela’s alliance with Russia, saying it reflects Cold War politics, while Russia and Venezuela say the alliance is aimed at promoting “polycentrism” and balancing out a world currently dominated by Washington.
U.S. Press Secretary Sean McCormack dismissed concerns about Russia eclipsing U.S. influence in Latin America. “I don't think there's any question about ... who the region looks to in terms of political, economic, diplomatic and as well as military power,” McCormack said in a press conference.
