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Venezuelan President Hugo Chavez on his regular program on Venezuelan television
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June 14, 2007
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Venezuela Will Buy Russian Submarines
Negotiations between Venezuela and Russia on the purchase of five to ten Russian submarines are winding down. The final decision may be made when Venezuelan President Hugo Chavez visits Russia on June 29. Chavez will visit Russia just before Russian President Vladimir Putin visits the United States. The submarine deal will likely become another irritant in U.S.-Russian relations.
Kommersant sources say that Venezuela has ordered five Project 636 and four Project 677E Amur submarines. It initially wanted only the 677, but that model is not yet part of the Russian Navy forces, and a contract for its sale cannot be written yet. Admiralteiskie Wharves are now building two 636 subs for Algeria. China purchased eight 636 in 2004-2006 for $1.8 billion.

Venezuela is spending big money on modernizing its armed forces. According to the Venezuelan Defense Ministry, the country spend $4.3 billion on arms purchases in 2005-2006. Of that sum, $3.4 billion went to Russia. Germany, France and Italy jointly and Russia competed in a tender to provide Venezuela with submarines. It will have the largest submarine fleet in South America, along with Peru, which has six submarines, Brazil, which has five, and Chile, which has four.

Venezuela makes no secret of the fact that it is preparing for military conflict with the United States.
www.kommersant.com

All the Article in Russian as of June 14, 2007

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