Chávez and Putin Bolster Military Ties

Russia and Venezuela have ratcheted up their challenge to US influence by forging military and economic deals and signalling a possible nuclear energy program in Venezuela.

Russia's prime minister, Vladimir Putin, said Latin America had become a Kremlin foreign policy priority during a visit to Moscow by President Hugo Chávez yesterday, which bolstered ties between the two countries.

In addition to accords on oil, gas and weapons purchases, the leaders discussed building nuclear reactors in Venezuela, a move that would underline Washington's lost sway over a region once considered its backyard. A Russian naval squadron is sailing towards the Caribbean for joint military exercises with Venezuela, the first such deployment in the western hemisphere since the cold war. It follows a visit last week by two Russian supersonic Tu-160 bombers.

"Latin America is becoming a noticeable link in the chain of the multi-polar world that is forming," said Putin. "We will pay more and more attention to this vector of our economic and foreign policy."

He added: "We are ready to study the possibility of working in the sphere of peaceful atomic energy."

Michael Shifter, of Inter-American Dialog, a Washington-based thinktank, said: "Should such a deal materialize, that would make Washington more worried about Caracas."

A Kremlin spokesman said Russia would loan Venezuela $1bn (£540m) for arms purchases and military development but did not elaborate on the details.