MercoPress. South Atlantic News Agency

Ecuador signs arms and energy deals with Russia: “just the beginning”

Rafael Correa signed the agreements at the Kremlin

President Dmitry Medvedev called new arms and energy deals between Russia and Ecuador just a beginning as Moscow strives to deepen ties in Latin America. Medvedev and Ecuadorean President Rafael Correa announced a 22 million US dollars deal for Russia to provide Ecuador with two Mi-17 transport helicopters.

“It's not much, but it's the beginning of cooperation,” Medvedev said. “There are prospects for our nations.”

They also presided over of the signing of agreements on Russia's assistance in the construction of two hydropower stations and development of Ecuador's substantial oil and gas reserves.

Russian Energy Minister Sergei Shmatko said that Inter RAO UES, the country’s largest electricity exporter, will help with the two hydropower plants of 200 megawatts and 400 megawatts.

Correa, the first Ecuadorean president to make an official visit to Russia, called his trip “historic.”

He added that “in all these strategic projects Russia can offer enormous support thanks to its technological know-how and financial capacity to provide financing”.

Rosatom Corp., Russia’s nuclear energy holding company, will explore uranium and other natural resources in Ecuador under Thursday’s agreement on peaceful uses of nuclear energy, according to company’s Deputy CEO Ivan Kamenskikh.

The Kremlin has recently sought to renew ties with Latin America in what is widely seen as a response to US support to ex-Soviet Georgia and Ukraine. The flurry of activity intensified after last year's war between Russia and Georgia over breakaway South Ossetia.

Nicaragua and Venezuela are the only nations that have followed Moscow in recognizing South Ossetia and another Russian-backed separatist province, Abkhazia, as independent countries. The Kremlin subsequently signed lucrative arms and energy deals with Nicaragua and Venezuela.

Russian daily Kommersant reported Thursday that Ecuador has showed interest in buying Russian jets, bombers and missile systems.

Last year, Moscow dispatched a pair of strategic bombers to Venezuela and a squadron of warships to Venezuela, Panama and Cuba, the biggest projection of Russian military power to the Western Hemisphere since the Cold War. Russia also signed an agreement with Bolivia and extended the landlocked country a 100 million US dollars credit for the purchase of military hardware.

Ecuador is Russia's third largest trade partner in Latin America - after Brazil and Argentina - with the 2008 turnover of 936 million USD. Almost 90% of bananas and some 60% of roses sold in Russia come from Ecuador.

In related news it was reported from Quito that Ecuador could return six helicopters recently bought from an Indian company after one of the aircraft crashed at an air show last week. The helicopters were supplied by Hindustan Aeronautics according to Quito’s press.

Ecuadorian Air Force chief Rodrigo Bohorquez was quoted as saying the contract allowed the return in the event of an irreparable fault. A special commission is investigating the accident.