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Medvedev's Venezuela talks to focus on energy, military ties

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Russian President Dmitry Medvedev will arrive in Venezuela on Wednesday for talks with U.S. critic President Hugo Chavez, designed to boost cooperation in the energy and military spheres.
MOSCOW, November 26 (RIA Novosti) - Russian President Dmitry Medvedev will arrive in Venezuela on Wednesday for talks with U.S. critic President Hugo Chavez, designed to boost cooperation in the energy and military spheres.

Venezuela was the next stop after Brazil on Medvedev's Latin American tour which is aimed at expanding Russia's political and business ties in the region. It is the first visit to the country by a Russian leader.

Medvedev's aide said ahead of the visit that energy ties have been "a locomotive" for the development of economic cooperation for the two countries.

"The heads of state are expected to discuss prospects for joint oil and gas production projects and efforts to ensure stability on the global hydrocarbons market," Sergei Prikhodko said.

Earlier reports said Venezuela's Petroleos de Venezuela (PDVSA) and Russian oil and gas companies would sign an agreement to set up a consortium on joint oil and gas production and processing on the sidelines of Medvedev's visit. The project is said to involve "tens of billions of dollars" in investment.

Russia's Gazprom will be the lead operator for the Russian part of the consortium that will include state-run oil giant Rosneft, Russian-British joint oil venture TNK-BP, Surgutneftegas, a Siberian oil and gas producer, and the country's largest independent crude producer LUKoil.

However, an unidentified senior Kremlin official stressed on Wednesday that a gap exists between Venezuela's political declarations and the actual scale of cooperation, particularly restrictions on access to hydrocarbons development.

"We need long-term guarantees for our companies, legislative guarantees for our long-term investment," the official said.

Venezuela is one of the world's largest oil producers with about 87 billion barrels of proven conventional oil reserves and huge non-conventional (heavy oil) deposits, most of which are located in the Orinoco oil belt.

In the military sphere, Russia is seeking to specify terms and conditions for the deliveries of BMP-3 infantry fighting vehicles and T-72 tanks to Venezuela, a major buyer of Russian weaponry, as the two countries prepare to sign a new contract, Venezuelan and Russian military officials said earlier.

A naval task force of Russian ships arrived in Venezuela ahead of Medvedev's visit on Tuesday to take part in joint naval exercises. Prikhodko said Medvedev and Chavez are due to visit Russia's Pyotr Veliky missile cruiser on Thursday.

In September, the country hosted a visit by Russian strategic bomber aircraft.

The controversial Venezuelan leader, who has sought to counter U.S. influence in the region, has made seven visits to Russia, including in July and September this year, in an effort to strengthen the alliance with Moscow.

The Russian president's aide also said Medvedev and Chavez would discuss bilateral cooperation within the United Nations, efforts to counter the ongoing global credit crisis, measures to encourage car production, shipbuilding, cooperation in agriculture and other areas.

The leaders are also expected to sign a series of deals, including on cooperation in the peaceful use of nuclear power and introducing a visa-free regime.

Chavez said ahead of Medvedev's visit that Russia would help build a civilian nuclear reactor in the country's northwest. Russian Prime Minister Vladimir Putin told Chavez in Moscow in September that Moscow would consider cooperation with Venezuela in the nuclear sphere.

Bilateral trade in 2007 more than doubled to $1.13 billion, with Russian exports outpacing imports from Venezuela in trade turnover, the Kremlin said. In January-August 2008, trade grew 60% year on year to $772 billion.

Medvedev will round off his Latin American tour with a trip to Cuba on Thursday, when he will meet with Raul Castro.

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