MOSCOW, Russia – The Russian and Venezuelan presidents held a meeting in Moscow on December 5 in which they signed various agreements. Among them, a guaranteed investment agreement of more than $5 billion in the Venezuelan oil sector. Political scientist Maksim Zharov comments on the goals of Russian investments and the possible US reaction to the agreements.
Among other contracts mentioned by the Venezuelan leader is a guaranteed investment of more than $1 billion in the mining sector, first in the area of gold exploration, and a contract to supply 600,000 tonnes of wheat to Venezuela.
For political scientist Maksim Zharov, information on the agreements reached shows that Venezuela is an important country for Russia in Latin America, in order to maintain strategic stability in the region and in the world.
Despite being accused of expansion, Moscow demonstrates with these investments its interest in developing mutually advantageous cooperation not only with the Commonwealth of Independent States (CIS) countries but also with other regions, Zharov said.
Explaining the goal of the $5 billion investment in the Venezuelan oil sector, the analyst pointed to the oscillations in the world oil market and the unstable prices of this fuel. Venezuela is one of the key players in this market and, cooperating with the Latin American country in this area, Moscow aims to preserve the aforementioned strategic stability.
“Strategic stability is not only about nuclear deterrence, but about stabilizing the world oil market. Investments in Venezuela are aimed at maintaining the stability of this market, which is very important for Russia,” Zharov said.
The deals will not please the United States, believes the analyst.
“They will try to force President Maduro to drop the contracts, they will try to take President Maduro away, as they have done in a number of countries, including Latin America,” Zharov said.
As an example, the expert cited the current situation in Argentina and Brazil, “where the situation is very unstable.”
In short, Zharov stressed that Washington will undoubtedly oppose the agreements, but since the United States has many problems right now, its steps may not work.