Chavez clinches energy, nuclear deals on Russia visit

16 Oct, 2010

Venezuela's maverick President Hugo Chavez clinched a host of deals Friday to boost a burgeoning relationship with Russia, including an accord to build the first nuclear power plant in his country. As well as the accord for Russia to build and operate the key Opec member's first nuclear power station, Chavez's ninth visit to Moscow saw big deals with Russia for the purchase of energy assets.
The flamboyant leader launched one of his customary tirades against the West after his talks in the Kremlin with President Dmitry Medvedev and also surprised his Russian counterpart by producing a bag of Venezuelan gifts. "The changes in relations in the economic sector have been tectonic and involve all areas of our mutual interests," Medvedev said alongside the Venezuelan leader.
The nuclear agreement was signed by the head of Russia's atomic energy agency Sergei Kiriyenko and built on a plan agreed by Prime Minister Vladimir Putin with Chavez during a visit to Caracas in April this year. Medvedev said diversifying energy sources was a priority even for a energy-rich country like Venezuela. "We want our partner to have the full range of options in energy and have energy independence and the means to develop," Medvedev said.
"Even a country rich in oil and gas like Venezuela needs new sources of energy," concern some countries. "I do not know if anyone is going to shudder at this. The president (Chavez) said there are going to be states that have different emotions about this. But I wanted to say our intentions are clean and honest." Kiriyenko told the ITAR-TASS news agency that the nuclear plant could be built "perhaps in 10 years and perhaps earlier."
Russia has been building Iran's first nuclear plant in the southern city of Bushehr, a project that has at times been the subject of considerable Western discomfort. Chavez said his country had grown too reliant on oil and had high levels of poverty despite "living in an ocean of oil." He blamed "imperialism" for the country's economic ills.
"All through the 20th century, Venezuela looked like a democracy but in reality was a colony. But now we have returned to our independence," he said. Chavez praised Russia for providing aid to developing countries in South America and Africa.
"Russia needs to continue in this direction, like the great nation it is, to build a new world," Chevez added. "I thank you, Vladimir. I thank you, Dmitry!" he said, referring to Medvedev and Prime Minister Vladimir Putin. The Russian president appeared taken aback when Chavez handed him a goody bag of Venezuelan treats, including chocolate bars, banana jam and a box of cocoa powder. At a ceremony in the Kremlin, Russian state oil giant Rosneft signed an agreement with Petroleos de Venezuela (PDVSA) to acquire its 50-percent stake in German refining firm Ruhr Oel GmbH for 1.6 billion dollars. The agreement will give Rosneft, Russia's biggest oil firm, a key foothold in the European market. Ruhr Oel GmbH was until now a joint venture with British energy firm BP.

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