Russia will give Venezuela a 2.2-billion-dollar loan to purchase Russian arms. It is not going to be the first defense deal between the two countries.
Venezuela has spent about $4.5 billion on Russia’s military hardware within the scope of 12 contracts that were officially signed during the recent several years. The Latin American nation particularly bought 24 Su-30 jets, tens of battle choppers and 100,000 Kalashnikov assault rifles.
Prior to his most recent visit to Moscow, Venezuelan President Hugo Chavez stated that he was intended to buy 92 T-72 tanks and a Smerch (Twister) volley-fire system from Russia. It is still unknown what exactly Venezuela is going to buy and when.
Chavez only said that Venezuela was going to buy a batch of missiles from Russia in the nearest future. The missiles are capable of hitting targets with precision at a distance of up to 300 kilometers.
The type, the quantities and the terms of the delivery have not been exposed.
It is worthy of note that the reduction of oil prices seriously damaged the nation’s defense budget. Venezuela reportedly owes about $15 billion to foreign companies, which include food-making enterprises.
In addition to defense cooperation, Russia and Venezuela are actively working on the establishment of a joint bank, the equity capital of which will make up $4 billion. Moreover, the two countries develop joint projects in the energy industry.
Also read: Russia's Navy in Venezuela: The facts