Chavez to tie knot with Russia

Venezuela and Russia plan to sign an agreement that would create one of the largest oil consortiums in the world, Venezuela's President Hugo Chavez said during a state visit to Moscow.

The consortium would be formed by Venezuela's state oil company PDVSA and its Russian counterpart Gazprom, state news agency ABN reported. The joint venture would make "high level" investments in the energy sector, Chavez said. Gazprom announced last week its involvement in one of three liquefied natural gas trains being developed in the country. The company is also part of a joint venture that was awarded two new natural gas blocks to provide gas to the train, a BNamericas report said. Chavez arrived in Moscow after a brief visit to China, where he also signed a number of energy-related agreements. The two countries also promised to expand other industrial ties. One industry analyst told the news agency that Chavez' moves in Russia could be part of a "dangerous political game". "Russia is now playing some of the old cold war cards to make life for the US as difficult as possible," the analyst said, suggesting it may be Russia using Venezuela and not vice-versa. "It's returning to military and industrial involvement in South and Central America to give the US headaches." Chavez's new alliances with Russia come as relations between Russia and the Western world are tense because of violence and political disturbances in Georgia and other former Soviet republics. "Chavez is playing a dangerous game. Until now he has not been any significant threat to US interests," the analyst added. "But by playing with ... the Russians, it could end up being very dangerous for all Venezuelans."
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