Russia, Venezuela edge closer to oil deal, talk arms

ST.PETERSBURG (Reuters) – Russia and Venezuela on Saturday moved closer to an oil venture deal and discussed arms trade, forging a partnership that may drag Russia into a row over the U.S. military presence in Colombia.

Venezuela’s President Hugo Chavez, due in Russia in September, said last week he was prepared to buy dozens of Russian tanks to counter the U.S. intention to increase a military presence in Colombia.

Russia, the world’s second largest oil exporter, wants to revive Latin American ties cultivated during the Soviet era. Sechin’s recent Latin American tour included traditional Soviet allies Cuba and Nicaragua.

Russia and Venezuela are expected next month to present a joint venture that aims to develop the Junin 6 block in the Orinoco oil belt, which Venezuela says has the world’s largest hydrocarbon reserves.

Reuters