Russia, Venezuela sign US$4b joint bank deal

MOSCOW – Russia and Venezuela signed a deal Tuesday to set up a new bank with starting capital of four US$4 billion to fund joint projects as Moscow ramps up its role in South America.

The agreement was signed at Russian Prime Minister Vladimir Putin’s residence near Moscow by the deputy finance ministers of the two countries.’We are moving to a high level of political and economic co-operation,’ Putin said as he greeted Venezuela’s Vice President Ramon Carrizalez, who told Putin there was now a ‘strategic’ partnership between their two countries.The bank will be 51-per cent owned by Russia through the state-controlled lenders VTB and Gazprombank, with the rest going to various Venezuelan partners, Russian Deputy Finance Minister Dmitry Pankin told reporters.The new bank is due to be created by the end of 2009, Pankin said.Venezuela is a key partner for Russia in South America, where Moscow is trying to expand its reach mainly through arms and energy deals.Moscow and Caracas signed arms deals worth US$4,4 billion between 2005 and 2007 and Russian energy groups are expanding activities in the country.-Nampa-AFP