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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Venezuela buys powerful missiles with Russian loan Sun Sep 13, 2009 8:18pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] CARACAS (Reuters) - Russia has agreed to lend Venezuela over $2 billion to purchase tanks and advanced anti-aircraft missiles in deals that show Moscow's commitment to working closely with Washington-foe President Hugo Chavez. Chavez said on Sunday the purchases agreed upon on a trip to Moscow last week included 92 tanks and an S-300 missile system that can shoot down fighter jets and cruise missiles. Two years ago, Russia agreed to sell the same S-300 system to Iran but has dragged its feet over delivering the weapons amid U.S. and Israeli concerns they will be used to defend Iran's nuclear installations. The socialist Chavez, who claims the United States could attack Venezuela for its oil reserves, also reiterated that Moscow was helping Venezuela develop nuclear energy but said he had no intention of developing an atomic bomb. "Let me be clear, Venezuela has no plans to invade anybody, or to be aggressive toward anybody," Chavez said on his weekly television show after announcing the $2.2 billion loan. He did not say how much the new weapons cost. A major oil exporter, Venezuela's finances have suffered this year because of lower crude prices. Chavez said Venezuela needed to borrow the money for defense spending to avoid cuts in education and health. In recent years, Venezuela has bought over $4 billion in weapons from Russia including 24 Sukhoi fighter jets. Critics say Venezuela is fueling an arms race in Latin America, but Chavez says he is modernizing the military for defensive purposes. Venezuela is embroiled in a diplomatic dispute with Colombia over a deal to allow U.S. troops into more bases in the neighboring country to help fight drug traffickers and guerrillas. Chavez, a fierce critic of U.S. foreign policy, says the Colombian bases plan could be used to launch an attack on Venezuela and increases the risk of war in South America. Last year, he ordered tanks to the Colombian border in a dispute over a Colombian bombing raid in Ecuadorean territory. ATOMIC POWER Chavez, who visited Moscow last week, said Venezuela was now buying 92 Russian T-72 tanks along with several types of missiles to build an air defense system. He mentioned the Buk-M2 and S-300 surface-to-air missile systems and the Smerch rocket launcher. The S-300, also known as the SA-20, is an extremely effective anti-aircraft system capable of tracking 100 targets at once. It can be used with missiles with a range of about 125 miles and can engage six targets simultaneously. "With these rockets it's going to be very difficult for foreign planes to come and bomb us," Chavez said. It was not immediately clear when Venezuela would receive the new weapons. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Bin Laden warns U.S. on Israel ties: website editor's choice Is Warren Buffett Kraft's ace in the hole? 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