Russia gives Venezuela major arms loan

Chavez and Medvedev may observe Russian army exercises taking place in Orenburg, Kommersant reported.
In deployments not seen since the Cold War, Russia this month sent two long-range bombers to Venezuela for exercises and has dispatched a flotilla of warships from the Arctic base of Severomorsk to Venezuela, near US waters.
Venezuela has signed 4.4 billion dollars’ worth of contracts to buy Russian arms since 2005, according to the Kremlin.
It has bought fighter jets, tanks and assault rifles, and Kommersant reported last week that it was planning to purchase anti-aircraft systems, armoured personnel carriers and more combat aircraft.
Chavez could also discuss broader economic cooperation with Russia, including the creation of a Russian-Venezuelan bank and business opportunities for Russian energy giant Gazprom in Venezuela, Kommersant reported.
Trade turnover between the two countries was 1.1 billion dollars in 2007, more than double that of 2006, the Kremlin said.
Kommersant said Chavez’s hastily-planned visit was linked to campaigning in upcoming local elections in Venezuela and would allow the leftist firebrand to stress his alliance with Moscow against Washington.
Venezuela, which is to hold local elections in November, expelled the US ambassador to Caracas earlier this month in what Chavez said was an act of solidarity with Bolivia, which also expelled its US envoy.