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June 28, 2007
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Hugo Chavez Receives Low-Key Welcome
// But lots of weapons
Venezuelan President Hugo Chavez arrived in Moscow yesterday. Today he will have negotiations with Russian President Vladimir Putin. Col. Chavez, who has stops in Belarus and Iran as well on this tour, was expecting a grandiose reception in Moscow. But many of the ceremonial events timed to his arrival were cancelled at the last minute. It seems the Kremlin decided not to irritate the White House before Putin's trip to Kennebunkport. Nonetheless, Chavez will discuss energy cooperation and buy his latest lot of arms while here.
An Inconvenient Guest

Chavez has been coming to Russia nearly annually for the last seven years, always in the summer. In the colonel's busy schedule, working day and night to form an anti-American axis, Moscow has always occurs on a tour of countries that he considers his closest allies in the fight against American hegemony. At the beginning of his presidency, Putin always received the Venezuelan president happily. Lately, he has been coming at the most inconvenient times. Lat year, for instance, the colonel managed wanted to come just before the G8 summit in St. Petersburg. The Kremlin insisted that he change his plans to come at the end of July, and it was decided that the meeting between Putin and Chavez, who arrived from talks with Belarusian President Alexander Lukashenko in Minsk, would be informal. That did not affect their friendly relations, however. Moscow sold Caracas $3-billion worth of weapons and Russian state companies reached energy agreements with Venezuela.

This year, Chavez was counting on the situation being corrected and on receiving a big welcome. Before he began his trip, he began telling about how Putin helped him stay in power during the attempted coup in 2002. Then he offered to address both houses of the Federal Assembly, or at least the full State Duma.

But Chavez's timing is off this year too. On July 1, Putin leaves for the United States for negotiations with U.S. President George W. Bush. Their conversation may be the last chance to resolve amiably the disagreement over Washington's plans to place part of its missile defense system in Europe. Chavez's trip to Moscow could seriously affect the outcome of those negotiations.

That may be why Chavez appearance before the State Duma was cancelled at the last minute through the efforts of the United Russia Party. Only 129 MPs voted for his appearance, with 226 votes necessary for it. Chavez will have to be satisfied talking to 40 Duma members. The ceremonial aspects of the trip have been trimmed to a minimum as well. The Venezuelan leader will meet with Putin only this evening, in the context of an informal dinner. The business aspect of the trip is not likely to suffer from those changes.

Business in Moscow

Chavez's visits are always good news for Rosoboronexport. Just before departing for Russia, he said, “Our country must have the means to defend the state on land, on water, underwater and in the air.” Soon after, Kommersant learned that Moscow and Caracas are close to concluding a major deal for the purchase a large lot of diesel-electric submarines. So far, the Venezuelan Defense Minister is prepared to buy five Project 636 subs, but Caracas will be able to buy four new Project 677E Amur models, which has yet to go into service in Russia. Venezuelan Navy commander Vice Admiral Armando Laguna stated that a formidable underwater fleet was needed to protect the oil-bearing continental shelf from possible American attack.

Venezuelan appetite are not limited to submarines. Caracas has also shown interest in Il-76 transport planes and Yak-130 training planes, and it may buy Top-M1 systems for its missile defense system. Moscow may offer various radar intelligence systems, handheld grenade launchers, portable ballistic missile complexes and mortars.

Besides military topics, the presidents will probably touch on energy as well. Moscow is most interested in holding such talks with the end of forming cartel of natural gas producers. Not long ago, Putin discussed that idea with Malaysian Prime Minister Ahmad Badawi. Now it is Chavez's turn for that talk, and he is in favor of the idea. Putin will probably try to win Chavez's support for holding the 2008 session of the Gas Exporting Countries Forum in Moscow. That was an initiative of Russian Minister of Industry and Energy Viktor Khristenko that was announced at the GECF conference in Doha in April.

Finally, Putin and Chavez will discuss major projects that Russian business has undertaken in Venezuela. Chavez said before taking off for Moscow that he is very strongly counting on Russian companies for the design and construction of the Southern Gas Pipeline, which will unite the energy complexes of Venezuela, Brazil, Argentina, Uruguay, Paraguay and Bolivia into a single energy network. Gazprom is hugely interested in that project. Projects involving LUKOIL will probably also be discussed. That company has also showed high interest in Venezuela.

Most likely, after all of those pleasant conversations, Chavez will forgive Moscow the lack of pomp and continue on his usual course with a light heart. After visiting a helicopter plant in Rostov-on-Don, he will visit Belarus and Iran. One thing may still darken Chavez's mood, however: if Putin does not follow his example and become president-for-life, next summer he will have to hold talks with someone else in the Kremlin.


Alexander Gabuev

All the Article in Russian as of June 28, 2007

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