MercoPress. South Atlantic News Agency

Putin and Chavez agree on oil and arms.

Russia and Venezuela, two of the world's leading exporters of oil, pledged that they will work to stabilize the turbulent global market for crude
The joint statement was released Friday in Moscow during Venezuelan president Hugo Chavez official state visit to Russia.

"The international oil market depends to a great extent on the state of our energy sectors and our policies, which should act in a responsible manner", said Russian president Vladimir Putin during talks with Mr. Chavez.

Chavez had advanced on Thursday during a meeting with Russian oil executives that the price of crude should not drop below 30 US dollars per barrel and that the current 22-28 US dollars band established by the Organization of Petroleum-Exporting Countries (OPEC) is no longer feasible.

"The important thing is cooperation among producing countries to shore up prices, and never to allow a sudden drop" underlined President Chavez, referring to a new agreement between OPEC and independent producers, the largest of which is Russia.

"Russia and Venezuela renew their interest in promoting contacts and dialogue between producing countries and oil consumers to stabilize the world oil market" reads the joint statement.

Besides the energy cooperation document which includes a joint venture to explore for oil and modernize refineries and gasoline distribution systems, Mr. Chavez revealed his intention to buy Russian helicopters, Kalashnikov assault rifles and other military hardware.

President Chavez, a former paratrooper, said that although his country is not preparing to invade any other country, "Venezuela needs to strengthen its armed forces to face any possible aggression; we are talking of 100,000 automatic rifles and a transfer of technology related to ammunition and maintenance".

The Venezuelan president also talked about the purchase of a fleet of Mi-35 combat helicopters to patrol borders which will be delivered to the Venezuelan army beginning next year.

"I want to fly them personally and will invite you to travel with me" Mr. Chavez told President Putin, "when you visit me in Caracas next year".

The Russian president described Mr. Chavez as a "friend" and congratulated him for winning the recall referendum last August which will see him in office until 2007.

"We are very pleased at this convincing victory in the polls that has eased Venezuela's internal tension; we hope that with a normalized internal situation Venezuela can continue its positive development", highlighted Mr. Putin.