Chavez’s petro-diplomacy tour

BUENOS AIRES — Venezuelan President Hugo Chavez heralded new economic and energy ties to Argentina on Tuesday as part of a renewed petro-diplomacy initiative highlighting his bid for regional leadership.

Opening a four-nation South American swing, Chavez signaled his oil-rich nation’s willingness to purchase up to $1 billion in Argentine bonds and help fund a $400-million gas plant designed to meet this country’s growing energy needs.

Venezuela’s oil-funded largess is expected to be on display during planned stops in Uruguay, Ecuador and Bolivia, all of which are expected to forge new energy deals with the government in Caracas.
The trip underscores Chavez’s strategy of doling out funds and fuel to an energy-starved region to win or bolster friendships, even as he remains a divisive and controversial figure in much of Latin America.

Opposition leaders here in Buenos Aires immediately assailed President Nestor Kirchner’s economic reliance on Caracas, which has purchased more than $4 billion in Argentine bonds in recent years and has bailed out a financially ailing dairy industry.

“Since Kirchner couldn’t fill the financial pothole, now he’s asking his usurious Uncle Hugo to help him,” said Ricardo Lopez Murphy, a right-wing candidate in October’s presidential election.

Kirchner, a moderate leftist, has welcomed Chavez’s aid as a key to Argentina’s continuing recovery from its 2001-02 financial crisis. Much to the chagrin of the Bush administration, Kirchner has remained a steadfast Chavez ally. “Venezuelan [natural] gas is going to have a direct importance in the Argentine economy,” said Kirchner, referring to a deal for a new liquefied natural gas plant here.

Los Angeles Times