Venezuela, Argentina tighten ties despite Washington

Argentine and Venezuelan rulers Néstor Kirchner (left) and Hugo Chávez, respectively, are meeting again

Argentine President Néstor Kirchner is scheduled to arrive in Venezuela late Tuesday to initial a number of agreements

Argentine President Néstor Kirchner Tuesday is visiting Venezuela to execute several agreements aimed at deepening bilateral ties in key areas such as energy and food, despite Washington's uneasiness vis-à-vis Venezuelan ruler Hugo Chávez.

Kirchner is scheduled to arrive late Tuesday in Venezuela, where he is staying for 24 hours. His activities will be focused on projects related to the heavy-crude oil Orinoco belt. In this scenario, Venezuela and Argentina are to reinforce energy ties, as Argentine state oil firm Enarsa is to operate in the 55,000 km2 area with estimated reserves of 1.3 trillion barrels of extra-heavy crude oil, AFP reported.

Enarsa is joining works to certify Venezuelan state oil giant Pdvsa reserves which, according to Chávez, are the largest in the world.

Top priority in the bilateral energy agenda are continued Argentine purchases of Venezuelan gas oil and joint construction of the Great Southern Gas Pipeline (GSS).

Further, Kirchner and Chávez are scheduled to complete an agreement under which Venezuela is to provide financial aid to Argentine cooperative Sancor -Argentina's second largest dairy firm. Under this agreement Venezuelan State Economic and Social Development Bank (Bandes) is to disburse USD 135 million to afford Sancor liabilities and provide capital goods. The cooperative is expected to repay the loan by shipping powder milk to Venezuela. The agreement calls for installation of dairy plants and powder milk plants in Venezuela.

Buenos Aires and Caracas are also preparing a new issuance of Southern Debt Bonds. Another item in the bilateral agenda will be an agreement with Buenos Aires-based shipyard company Astilleros Río Santiago for construction and repair of Pdvsa oil tankers.

However, at some moment during his visit, Kirchner is expected to share with his Venezuelan counterpart some of the positions senior officials with the US Department of State visiting Argentina last week expressed to the Argentine ruler's senior aides, an official Argentine source speaking under condition of anonymity told AFP.

Last week, US Under Secretary of State for Political Affairs Nicholas Burns and US Assistant Secretary of State for Western Hemisphere Affairs Thomas Shannon visited Buenos Aires. Shannon described the White House ties with the presidential palace of Miraflores as "really poor," while he claimed that good Argentina-Venezuela relations would not cast shadow upon Buenos Aires-Washington relations. In Casa Rosada, the see of the Argentine Executive Branch, people believe that Argentina and Brazil could help instill some balance vis-à-vis Chávez' offensive, following his overwhelming re-election last December.

Translated by Maryflor Suárez R.
msuarez@eluniversal.com