July 30, 2006
Iran cements warm ties to Venezuela

(Independent Online, South Africa) - "Venezuelan President Hugo Chávez enveloped his Iranian counterpart Mahmoud Ahmadinejad in a bear hug, as the two men planned to underscore their anti-U.S. rhetoric with a series of investment deals (...)

A beaming Ahmadinejad presented Chavez with the golden "High Medallion of the Islamic Republic of Iran" and slipped a blue sash around his chest.

"Mr Chavez is my brother, the brother of the whole Iranian nation and of all freedom-seeking people in the world," he said.

"He is a perpetual warrior against the dominant system, a worshipper of God and a servant of the people," he added (...)

There was more than Yankee-bashing on the agenda with a ceremony planned for contract signing.

Iran's Oil Minister Kazem Vaziri-Hamaneh said Iranian firm Petropars would invest $4-billion (about R27-billion) in two Venezuelan energy projects.

Petropars is already certifying some tarry crude in the Orinoco Belt and is looking to develop reserves there. It is also seeking to supply training and services to the Norte de Paria offshore gas field.

However, it was not immediately clear what contracts would be signed with Chavez also discussing co-operation on pharmaceuticals and tractors.

Ramírez mentioned the possibility of exporting petrol to gas-guzzling Iran. Although the world's number four crude oil exporter, Iran lacks the refinery capacity to produce enough gasoline for itself.

Iranian investors have already poured $1 billion of investment into Venezuela, primarily in sectors such as energy, construction and tractor-building.

Although commercial deals are proceeding, some analysts have remarked Chavez's dependence on the United States as a buyer for his oil will probably keep him clear of striking any arms deals with Tehran. Caracas is looking mainly to Russia for weapons".