26-11-04

In Moscow, Venezuelan President Hugo Chavez and Russian President Vladimir Putin discussed energy cooperation between their countries, two of the world's largest oil suppliers, and pledged to work to stabilize the world oil market.

In a joint statement, Putin and Chavez pledged to "continue efforts to maintain stability on the world oil market."

Putin said that Russia and Venezuela need to further increase their economic cooperation after bilateral trade grew more than twofold last year. Putin also said the two countries will cooperate in the military and technical sphere and well as in building energy facilities in Venezuela.

Venezuelan officials said in October they want to buy 40 military helicopters from Russia to patrol its volatile border with Colombia. Chavez said he was expecting to receive the helicopters next year. He also said he is interested in purchasing 100,000 automatic assault rifles as well anti-missile and anti-tank weapons from Russia.

Chavez praised Putin as a strong and popular leader, and expressed Venezuela's support of Russia in the fight against terrorism.

"We like how with a strong hand you are working on reviving the great Russia," Chavez told Putin, adding that he invited him to visit Caracas next year.

After official talks, Russia's LUKoil oil company signed a memorandum of understanding with the Venezuelan state oil company Petroleos de Venezuela, which envisions setting up a joint venture on exploring and refining oil. LUKoil has said it plans to spend up to $ 1 bn developing oil fields in Venezuela. The company is contemplating investments in heavy crude refining projects, exploration and the upgrade of less productive oil fields.

Chavez said that OPEC should keep oil production unchanged and warned against letting oil prices drop sharply. He said that the minimum price a barrel should be $ 30 instead of the current $ 22 a barrel-$ 28 a barrel price corridor.

Putin and Chavez also signed an agreement on Russia's bid to join the World Trade Organization. Russia hopes to begin the formal process of accession into the world's biggest trading club in 2005. To do that, it first has to sign agreements with all its major trade partners who are WTO members. The two leaders also condemned the US trade and financial embargo against Cuba and called for its removal.

Source: AP