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Edition: U.S. Article Slideshow Video Save Email Print Reprints Most Popular Most Shared Thai protesters swarm Bangkok's main shopping district 1:42am EDT Gunmen kill up to 25 people in Baghdad: officials 2:58am EDT Obama urges China's Hu to get behind Iran push | Video 02 Apr 2010 Obama and Medvedev to sign landmark nuclear arms pact 02 Apr 2010 North Korean cargo train sparks Kim trip speculation 02 Apr 2010 Thai protesters swarm Bangkok's main shopping district 1:42am EDT Gunmen kill up to 25 people in Baghdad: officials 2:58am EDT Obama urges China's Hu to get behind Iran push | Video 02 Apr 2010 Obama and Medvedev to sign landmark nuclear arms pact 02 Apr 2010 North Korean cargo train sparks Kim trip speculation 02 Apr 2010 Putin bolsters oil, defense ties with Venezuela Darya Korsunskaya and Anthony Boadle CARACAS Fri Apr 2, 2010 10:50pm EDT Factbox Factbox: Russia's ties with Venezuela: arms, energy, politics Fri, Apr 2 2010 Related Video Russian PM Putin visits Venezuela. Fri, Apr 2 2010 < 1 / 4 > View Full Size CARACAS (Reuters) - Russian Prime Minister Vladimir Putin gave the United States' main Latin American foe, Venezuelan President Hugo Chavez, a needed boost with a brief visit on Friday to discuss oil, defense and nuclear energy cooperation. World | Russia They launched a $20 billion venture between Russian firms and Venezuelan state company PDVSA aimed at pumping 450,000 barrels a day -- almost a fifth of the OPEC member's current output -- from the vast Orinoco heavy oil belt. Russia also delivered the last four of 38 military transport helicopters, but no new defense agreements were signed, though Chavez said Moscow was open to help Venezuela develop nuclear energy for generating electricity. "We are prepared to begin drawing up the first project for a nuclear power generator, obviously for peaceful purposes," Chavez said at a news conference with Putin. "We are not building an alliance against the United States. We don't care what Washington thinks," Chavez said, adding that he would continue to make "modest" arms purchases from Moscow that were the minimum needed for Venezuela's defense. Putin's 12-hour visit provides a welcome lift for Chavez, who is facing domestic and international criticism for failing to solve Venezuela's economic woes and attempting to silence opposition to his 11-year rule. Putin also held talks in Caracas with Bolivian President Evo Morales, along with Chavez the fiercest opponent of what they call U.S. "imperialism" in Latin America. Facing a national electricity crisis that has caused widespread outages, Chavez's government is turning to Iran and Russia for help to develop nuclear power. Venezuela, South America's top oil exporter and a major U.S. supplier, has also expanded military ties with Russia under Chavez, who says the United States could attack Venezuela for its oil reserves. Since 2005, Venezuela has bought about $5 billion worth of Sukhoi jet fighters, Mi-17 helicopters and Kalashnikov assault rifles. Chavez received $2.2 billion in credit lines for more Russian arms during his eighth visit to Moscow in September, including T-72 tanks and the S-300 advanced anti-aircraft missile system. U.S. Secretary of State Hillary Clinton expressed concern last year that the Russian weapons purchases by Venezuela could trigger an arms race across Latin America. Chavez says his growing arsenal is aimed at countering a planned increase in the U.S. military forces at bases in neighboring Colombia, Washington's closest ally in the region. ORINOCO OIL VENTURE The highlight of Putin's visit was the rolling out of the joint venture to develop the Junin 6 field in the Orinoco, which will require $20 billion in investments over 40 years. Venezuela expects the venture to begin producing 50,000 barrels a day by the end of the year. To boost its sagging output from traditional wells, Venezuela needs foreign investment and technology to tap the heavy oil of the Orinoco belt that requires much upgrading to turn into lighter crude. The Russian consortium involved in Junin 6, state giant Rosneft, private major Lukoil, Gazprom, TNK-BP and Surgutneftegaz, paid Venezuela the first $600 million tranche of an agreed $1 billion signing fee on Friday. PDVSA holds a 60 percent stake in the project. The Russian firms are also in talks to create joint ventures to develop three more Orinoco blocks, Junin 3 and Ayacucho 2 and 3. Chavez hopes Russian cooperation will reach as far as the space industry. "We could even install a satellite launcher," he said at a televised cabinet meeting on Thursday. The U.S. State Department scoffed at Chavez's space plans, pointing out that Venezuela was so short of electricity the government had extended the Easter holiday for a full week. "Perhaps the focus should be more terrestrial than extraterrestrial," said spokesman P.J.Crowley. (Additional reporting by Dmitry Zhdannikov in Moscow; Charlie Devereux in Caracas; Editing by Daniel Wallis) World Russia More from Reuters Thai protesters swarm Bangkok's main shopping district BANGKOK (Reuters) - Tens of thousands of protesters converged on Bangkok's shopping district on Saturday, forcing major retailers to close while accusing authorities of neglecting the poor on the 21st day of a mass rally seeking snap elections. Gunmen kill up to 25 people in Baghdad: officials Obama urges China's Hu to get behind Iran push | Video Obama and Medvedev to sign landmark nuclear arms pact North Korean cargo train sparks Kim trip speculation Pentagon boosting Afghanistan "eyes in the sky" » More Top News Beware the scary regulators? It's anyone's guess how far the SEC will go in its market overhaul, but industry experts agree on one thing: a light touch is key. 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Full Article Building a career around divorce Lifestyle © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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