russia counterplan

8/12/2019 Russia Counterplan

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General

Russia should engage Latin America its politically preferred andthe US is unpopular

Fillingham, 10 (Zachary, BA in International Relations from York University, MA inChinese Studies from the University of London, recipient of a Taiwan Ministry of EducationHuayu Scholarship; Russia Eyes Latin America, Geopolitical Monitor, 5 April 2010,http://www.geopoliticalmonitor.com/russia-eyes-latin-america-3652)//HORussia is poised to occupy the diplomatic space created in Latin America by American decline.Broadly speaking, there are two factors that are currently harming American interests in Latin America. The first is the burden ofhistory insofar that several governments view relations with the United States through the lens of Washingtons pseudo-colonialpast. The second is American decline, or in other words, a new reality in global politics that casts the United States as one important

player among several others. It follows that Latin American states now enjoy a greater degree of choice ininternational economic, political, and military engagements. In many ways, Russia is a natural

winner here, for its capital, energy reserves, international influence, and military technologyrepresent an appealing alternative to feeding the politically unpopular perception of Americandominance in the region. Such was the dynamic at work during Russian Prime Minister Vladimir Putins recent visit toVenezuela. The visit resulted in the announcement of a $1 billion USD deal for a consortium of Russian energy companies to develop

the Hunin-6 oil field; a reserve that could end up producing up to 450,000 barrels a day by 2017. Venezuela needs technology-intensive capital to develop its vast energy reserves and is politically averse to dealing with Washington. Consequently, Russia is ableto step in as a natural partner. The same is true in the area of defense spending, as the Putin-Chavez summit also produced newmilitary deals that could ultimately amount to anywhere from $2-$5 billion USD. Moscow has pledged to provide Venezuela with avariety of military hardware, including: T-72 tanks, Smerch rocket launchers, and other unspecified platforms. Bolivian PresidentEvo Morales also benefited from Vladimir Putins Latin American visit to thetune of $100 million USD worth of loans to buy

Russian helicopters. The political symbolism that underpins Russian re-engagement with Latin America cannotbe understated.From the Rio Groups announcement of the creation of the Community of Latin American and CaribbeanStates (CELC)- a regional forum that excludes the United States- to Brazils more recent slapping of sanctions on a variety of

American trade goods, there is no shortage of evidence to show that Latin American states arecommitted to moving out of the shadow of their powerful neighbor to the north. Given the trend ofLatin American assertiveness of late, we may see another big announcement coming down during the BRIC countries summit in

Brazil in mid-April. This issue carries symbolic weight on the Russian side as well. Re-engagementwith Latin America offers Moscow an opportunity to reclaim some of the international prestige

that vanished during the demise of the Soviet Union. To once again penetrate a region that carried so muchweight during the Cold War caters to Russian nationalist sentiments, which just so happens to be a central pillar of Prime MinisterVladimir Putins political fortunes. That Putin did not cancel his scheduled trip to Venezuela after last weeks Moscow bombings is

indicative of the importance that is currently being placed on engagement with Latin America. Given the mutual benefits,symbolic potency, and the diplomatic space afforded by American decline, we should expect Russia tocontinue to deepen relations with Latin American states, much to the displeasure of the Obama administration.Bolivian President Morales calls for Russia to return to Latin America will likely go down in history as prophetic, because that isexactly whats going to happen.

Mahapatra 5/3(Debidatta Aurobinda Mahapatra,is an Indian commentator. His areas ofinterests include conflict, terrorism, peace and development BRICS see greater role in Latin

America June 3,2013 http://indrus.in/world/2013/06/03/brics_see_greater_role_in_latin_america_25721.ht

ml)Last week witnessed some crucial developments from BRICS perspective. The Cuban foreignminister visited New Delhi and sought BRICS partnership with Latin American countries,representatives from Cuba, Haiti, Costa Rica and Chile met Russian Foreign Minister, SergeiLavrov in Moscow and sought Russian cooperation for the development of Latin Americancountries and Chinese President, Xi Jinping toured Trinidad and Tobago, Costa Rica andMexico to widen Chinese engagement in the region. Like Africa, Latin America is emerging as ahub of economic development with huge natural resources; it is but natural that it has gainedincreasing attention of the world. In this context, BRICS engagement in the region, consisting of
http://indrus.in/author/Debidatta+Aurobinda+Mahapatrahttp://indrus.in/world/2013/06/03/brics_see_greater_role_in_latin_america_25721.htmlhttp://indrus.in/world/2013/06/03/brics_see_greater_role_in_latin_america_25721.htmlhttp://indrus.in/world/2013/06/03/brics_see_greater_role_in_latin_america_25721.htmlhttp://indrus.in/world/2013/06/03/brics_see_greater_role_in_latin_america_25721.htmlhttp://indrus.in/author/Debidatta+Aurobinda+Mahapatra


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33 countries with population of 600 million, has become timely. The establishment ofCommunity of Latin American and Caribbean States (CELAC) in 2011 has provided the region aunified voice, and with Brazil being a member of BRICS as well as CELAC, the BRICSengagement in the region will be mutually beneficial with larger implications for the globe.Cuban Foreign Minister, Bruno Eduardo Rodrguez Parrilla told in New Delhi that CELAC

wants to improve relations with BRICS. He also stated, We wish to seek a higher level of

economic cooperation with the India and the other BRICS nations, which we consider to bevaluable. India is the first dialogue partner of the CELAC, which has provided the group aformat to develop closer relations with India in diverse areas particularly informationtechnology, medical services and tourism as elaborated by the Cuban minister. He furtherannounced, We see an opportunity for mutually beneficial economic relations with India. TheCELAC has a similar format of dialogue with China, which can be further extended to Russiaand South Africa. The CELAC, which consists of all countries of the two American continents,

but without the US and Canada, has recently started exploring economic relations with othercountries including economic power houses of the BRICS. Parrilla pointed out that there aremany common values and objectives between CELAC and BRICS, which need to be furtherexplored. The foreign ministers of Cuba, Haiti and Costa Rica and deputy foreign minister ofChile met Sergei Lavrov in the Russian capital to deliberate on various issues including

promoting dialogue, trade and visa-free regime. The joint communiqu brought out thecommonalities of interests in the areas of tackling terrorism, developing economic relations,promoting democracy, advancing principles of international law and the United NationsCharter, countering transnational organized crime, and tackling other threats and challenges.Lavrov stated at the end of the meeting, Our friends have expressed their desire to makepermanent contacts between the CELAC and BRICS We believe this is a very attractive suggestion and we will definitely discuss it with other states that are members of thisassociation. Russian foreign ministry also expressed the idea of establishing a permanentmechanism for political dialogue and cooperation between Russia and CELAC. China hasstarted pursuing vigorously its Latin American policy. It has already replaced the US as thelargest trading partner of Brazil and Chile. Its trade with Latin America has grown since the lastdecade. From 2000 to 2011, it has grown 20 fold, from $3.9 billion to $86 billion. Chinese

Assistant Foreign Minister, Zheng Zeguang on the eve of Xi Jinpings visit to Latin Americadispelled any notion of competition between China and the US in the region and stated thatChina can work with the US in a framework based on mutual trust, equality and inclusiveness.Xi was received by the Prime Minister of Trindad and Tobago, Kamla Persad-Bissessar. Besidesthis Caribbean country, Jinping also visited Costa Rica and Mexico. China is looking forward to

widen its investment in the exploration of natural resources including energy resources in theregion. Related: Russia seeks to restore influence in Latin America BRICS continue Africanengagement BRICS profile continues to rise BRICS key element of the emerging multipolar

world- Putin The BRICS engagement with CELAC is not only a factor in promotingmultilateralism and fostering a multi-polar world structure, but it also accrues economicadvantages to both the groupings. While the BRICS members are fast rising economies withhuge financial resources, the CELAC countries have also registered growth despite globaleconomic slowdown. The Latin American countries are also rich in natural resources. The Unionof South American Nations on Natural Resources and Integral Development in its meeting in

Venezuelan capital Caracas last week emphasized on natural resources and their exploration forthe development of the region. Latin America reportedly has 38 percent of copper, 21 percent ofiron, 65 percent of lithium reserves, 42 percent of silver, and 33 percent of tin. It also containsabout 30 percent of the total of the worlds water resources and 21 percent of the worlds naturalforests. Some of the Latin American countries such as Mexico and Venezuela are rich in energyresources. The huge population of CELAC makes the region a vast market for investment andalso for import from the BRICS countries. The rising prowess of the BRICS will grow with its


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Latin American engagement. Though many of the initiatives discussed above are related toindividual members of the BRICS, this adds to the collective sphere of influence of the grouping.

As the members Latin American engagement takes more dynamic shape, the prospects ofcollective engagement as a group can be explored. The grouping can evolve common strategiesin exploring the resources in the region for mutual advantage. In this venture, the proposedBRICS bank can be an effective tool.


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Cuba

Cuba wants Russia cooperationXinhua, 5/18(Xinhua News Agency, citing Cuban parliament speaker Esteban Lazo;Cuba seeks greater economic cooperation with Russia,http://news.xinhuanet.com/english/business/2013-05/18/c_132390893.htm)//HOCuban parliament speaker Esteban Lazo saidhere Friday that his country is interested in expandingeconomic cooperation with Russia.Lazo, president of Cuba's unicameral parliament, the People's Power NationalAssembly, made the remarks after signing an inter-parliamentary cooperation agreement with Valentina Matviyenko, chairwoman

of Russia's Federation Council."The relations between Cuba and Russia are at an expansion moment ,"Lazo said, adding that Matviyenko's visit would further promote the "excellent" historical and friendly ties between the two

governments and peoples.On Friday, Matviyenko also held talks with Cuban President Raul Castro.Lazosuggested that besides its investment in Cuba's oil sector, Russia should also increaseinvestment on the island in the spheres of nickel production, tourism and agriculture.Havana andMoscow were close allies during the Cold War era, but after the collapse of the Soviet Union in 1991, the relations cooled off until2005 when both governments started to relaunch their traditional bonds with an exchange of visits of national leaders in the nextfew years.

Russia wants to expand bilateral links with cubaLatin Press 5/17/13 (Cuba and Russia Highlight Importance of Developing BilateralLinksMay 17, 2013 http://www.cadenagramonte.cu/english/index.php/show/articles/14389:cuba-and-russia-highlight-importance-of-developing-bilateral-links) DFRussian Parliament presidentValentina Matviyenko and her Cuban counterpart, Esteban Lazo,coincided Friday in the importance of keeping on the development of the bilateral relations

between Cuba and Russia, which both regarded as excellent.In a meeting celebrated at the National Hotel in Havana, bothexpressed their satisfaction for the presence of a Russian delegation in Cuba, and this willcontribute to strengthen the inter-parliamentary links, and also in other aspects.The president of theCouncil of the Russian Federation highlighted that Cuba is not only a strategic partner of her

country,but

a friend for whom they feel a special affection forged in historical relationsaccumulated for many years. Matviyenko congratulated Esteban Lazo for his election last February as president of the Parliament ofthe island, and praised the rejuvenated composition and with high feminine representation.This women's wide presence in the Cuban Parliament is

an example to be followed, she said.The visitor added that although in the Federal Assembly of Russia thereare representatives of diverse political currents, there exists a consensus referred to theimportance of extending relations with Cuba. For his part, the parliamentary leader of theCaribbean island emphasized in the impulse started to the bilateral links from the visits oftheCuban President, Ral Castro to Moscow in July, 2012; and o f the Prime Minister of Russia, Dimitri Medvedev, toHavana in February 2013. Lazo pointed out that more than 30 agreements of cooperation have

been signed, and only it remains to implement them and give them pursuit. The bilateral economic agenda, he added,allows having a clear idea of the development of these links. Lazo highlighted the importance ofthe investment process that Russia does in Cuba in the oil sector, and mentioned the Cubaninterest to extend investments to other spheres such asthe production of nickel, tourism and

agriculture. The parts also referred to agreements to finish pendent matters.

Cuba wants more cooperation with RussiaScaliger, 8(Charles, Russia and Cuba Get Cozy, 1 September 2008,http://www.thenewamerican.com/world-news/south-america/item/10483-russia-and-cuba-get-cozy)//HOAs tension over the Russian occupation of Georgia continues to simmer, Moscow is quietly stirring the embers of theCold War inanother part of the world still-communist Cuba.In August, Russian Deputy Prime Minister Igor Sechin and
http://www.cadenagramonte.cu/english/index.php/show/articles/14389:cuba-and-russia-highlight-importance-of-developing-bilateral-linkshttp://www.cadenagramonte.cu/english/index.php/show/articles/14389:cuba-and-russia-highlight-importance-of-developing-bilateral-linkshttp://www.cadenagramonte.cu/english/index.php/show/articles/14389:cuba-and-russia-highlight-importance-of-developing-bilateral-linkshttp://www.cadenagramonte.cu/english/index.php/show/articles/14389:cuba-and-russia-highlight-importance-of-developing-bilateral-links


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Russian Security Council Secretary General Nikolai Patrushev traveled to Havana and met with Cuban President Raul Castro.

Recently, Russia has expressed interest in reviving both economic and military tieswith its erstwhileCaribbean client state, ties that languished after the implosion of the Soviet Union in the early 90s. Cuba, for its part, isinterested in cultivating partnerships with other regimes besidesHugo ChavezVenezuela.While Cubahas long resented what it regards as Moscows abrupt betrayal and abandonment of the Castro regime at the end of the Cold War,

every indication points to a willingness on both sides to bury the hatchet. After the 9/11 attacks in 2001,Russia supposedly abandoned the huge Soviet-built Cuban electronic eavesdropping center at Lourdes, which was run by 1,500

Russian military and KGB/FSB technicians, but that has not been verified. But Cuba continues to monitor and jam Americangovernment and civilian signals and broadcasts either from Lourdes or the Communist Chinese-built facility 20 miles from

Havana.Russia seeks to reassert itself as a world power, which includes a renewed presence inLatin America, while Cuba wants to diversify its economic partners to reduce its dependence on

Venezuela, explained Dan Erikson at Inter-American Dialogue in Washington, D.C., as reported in a recent Reuters story.Russia has also signaled a willingness to re-establish a military presence in Cuba, including a possible missile defense system.Referring to Russian anger at the U.S. deal to set up a missile defense system in Poland and the Czech Republic, Cuba expert PhilPeters at the Lexington Institute in Virginia told Jeff Franks of Reuters, Russia is clearly irritated at what it perceives as U.S.meddling in its neighborhood. It seems to be sending a message that if you play on our periphery, well play in yours.Some U.S.analysts were doubtful Cuba would rebuild its military alliance with Russia. Its impossible to imagine that anyone in the Cubanleadership would want to put their country in the bulls eye of another superpower showdown reminiscent of the missile crisis,Brian Latell, a former CIA analyst, told Jeff Franks.The Putin/Medvedev government, however, is offering a very different take.

Following the Sechin and Patrushev visit to Havana, the Russian Security Council said in a statement that the two countrieshad agreed to work to restore traditional relations in all areas of cooperation.

Russia wants engagement with CubaAP, 8(Associated Press, citing Putin and Vice Premier Sechin; Ex-Russian PresidentVladimir Putin Calls for Restoration of Influence in Cuba, 4 August 2008,http://www.foxnews.com/story/2008/08/04/ex-russian-president-vladimir-putin-calls-for-restoration-influence-in-cuba/)//HO Prime Minister Vladimir Putin is calling for Russia to restore its influential position informer Cold War allyCuba, Russian news reports said Monday.The statement comes amid persistent speculation about whether Russia is seeking amilitary presence in the country just 90 miles from the United States in response to U.S. plans to place missile-defense elements inPoland and the Czech Republic."We should restore our position in Cuba and other countries," Putin was quoted as saying by theInterfax news agency.Putin spoke Monday while hearing a report on a recent Russian delegation's trip to Cuba. Vice Premier Igor

Sechin and others met with the Cuban leadership and discussed an array of cooperationprojects."We agreed on the priority for the direction of cooperation -- energy, mining,

agriculture transport, health care and communications,"Sechin said, according to the RIA-Novosti newsagency.Military issues were not mentioned in the reports. But separately RIA-Novosti quoted an influentialanalyst and former top defense official as saying Russia could make a military return to Cuba."It is not a secret that the West iscreating a 'buffer zone' around Russia, involving countries in central Europe, the Caucasus, the Baltic states and Ukraine," theagency quoted Leonid Ivashov, the head of the Academy of Geopolitical Problems, as saying. "In response, we may expand ourmilitary presence abroad, including in Cuba."

Improving Russia relations solve Liberalization of Cuban economyButrin 13(Dimitri Butrin, WHY IS RUSSIA WRITING OFF BILLIONS OF CUBA'S DEBT?2013-02-28,http://www.worldcrunch.com/business-finance/why-is-russia-writing-off-billions-of-cuba-039-s-debt-/medvedev-castro-soviet-union-ussr-oil-offshore-drilling/c2s11038/,//AR)

HAVANA - No one was expecting groundbreaking developments from Dmitry Medvedevs less-than-24-hour visit to Havana last

week.But on the evening of Feb. 21, Medvedev quietly joined Raul Castro and other representatives of theCuban government at the Palace of the Revolution to sign a major debt-restructuring agreement.Medvedev also met with Fidel Castro, who remains at the center of Cuban politics.The debt-restructuring plan relates to outstanding bills incurred by Cuba during the time of the Soviet Union, which Russia at leasttheoretically has the rights to collect on. There is no official sum given for the amount of debt involved: Russia says that the totaldebt amount owed by Cuba is more than $30 billion, but during negotiations between Russia and Cuba related to the debt in 2008,both sides generally were discussing between $20 billion and $22 billion. The official amount of foreign debt that Cuba hasrecognized but not serviced since 1987 is $11 billion.Cuba holds the largest Soviet-era debts, and countries with smaller debts,

such as Afghanistan and Iraq, have already restructured their debts with Russia. But Cubas unrecognized debts toRussia have hindered Cubas international trade for several years. It has impeded Cuban efforts


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to restructure its debt with other countries and given it credit problems,worsening the effects of the U.S.

trade embargo on Cuba .The change in status for the lions share of Cubas international debt if it is not

accompanied by a stricter sanctions from the U.S. will allow Cuba to re-enter the international

lending market, although in a somewhat limited capacity. That gives economic liberalization a

chance at spreading throughout Cuba. The terms of the debt restructuring are still unknown, and both sidesseem intent on keeping it a secret. But in other cases where Russia has agreed to restructure Soviet-era debt, the deal has involvedwriting off between 90% and 95% of the debt. So it is unlikely that Cuba will end up owing more than $3 billion. Ulterior motives?There are several theories circulating among experts, however. One is that opening the relationship with Cuba is a type ofinsurance against changes in Venezuela. Another theory is that the interest in working with Cuba could be related to attempts to findoil off the Cuban coast.Since 2008 there have been discussions about the possibility of a large offshore oil deposit near the northerncoast of Cuba. Venezuelan company PdVSA, the Malaysian Petronas, Russian Zarubezhneft and the Spanish Repsol have exploredthe area and decided, in 2012, that there was no commercially usable oil. But in December Zarubezhneft started a second round ofexplorations in a deeper area. The second round of tests will wrap up in June, but the results could theoretically be availablealready.If Zarubezhneft does find oil, it is entitled to sign an agreement with the Cuban state-owned oil company, Siret, to shareexploitation of the deposits from now until 2034. Zarubezhneft did not comment on the issue. Local sources said there was no newson the second round of explorations. Regardless, Russias rush to complete the debt-restructuring process by Sept. 2013 could be

related to the possibility of major oil reserves in Cuban coastal waters.Regardless of the oil situation, Russia is trying torestore active trade with Cuba. The Federal Customs Service has already signed agreements withCuba on information sharing and preferential tariffs. Cuba has also signed several contracts topurchase Russian airplanes. Hardly a return to the Cold War bustle between the two countries, but it was time to get backto business.


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Cuba Oil

Russia key to Cuban off-shore drillingButrin 13(Dimitri Butrin, WHY IS RUSSIA WRITING OFF BILLIONS OF CUBA'S DEBT?2013-02-28,http://www.worldcrunch.com/business-finance/why-is-russia-writing-off-billions-of-cuba-039-s-debt-/medvedev-castro-soviet-union-ussr-oil-offshore-drilling/c2s11038/,//AR)

HAVANA - No one was expecting groundbreaking developments from Dmitry Medvedevs less-than-24-hour visit to Havana last

week.But on the evening of Feb. 21, Medvedev quietly joined Raul Castro and other representatives of theCuban government at the Palace of the Revolution to sign a major debt-restructuring agreement.Medvedev also met with Fidel Castro, who remains at the center of Cuban politics.The debt-restructuring plan relates to outstanding bills incurred by Cuba during the time of the Soviet Union, which Russia at leasttheoretically has the rights to collect on. There is no official sum given for the amount of debt involved: Russia says that the totaldebt amount owed by Cuba is more than $30 billion, but during negotiations between Russia and Cuba related to the debt in 2008,both sides generally were discussing between $20 billion and $22 billion. The official amount of foreign debt that Cuba hasrecognized but not serviced since 1987 is $11 billion.Cuba holds the largest Soviet-era debts, and countries with smaller debts,

such as Afghanistan and Iraq, have already restructured their debts with Russia. But Cubas unrecognized debts toRussia have hindered Cubas international trade for several years. It has impeded Cuban effortsto restructure its debt with other countries and given it credit problems,worsening the effects of the U.S.

trade embargo on Cuba .The change in status for the lions share of Cubas international debt if it is not

accompanied by a stricter sanctions from the U.S. will allow Cuba to re-enter the international

lending market, although in a somewhat limited capacity. That gives economic liberalization a

chance at spreading throughout Cuba. The terms of the debt restructuring are still unknown, and both sidesseem intent on keeping it a secret. But in other cases where Russia has agreed to restructure Soviet-era debt, the deal has involvedwriting off between 90% and 95% of the debt. So it is unlikely that Cuba will end up owing more than $3 billion. Ulterior motives?There are several theories circulating among experts, however. One is that opening the relationship with Cuba is a type ofinsurance against changes in Venezuela. Another theory is that the interest in working with Cuba could be related to attempts to findoil off the Cuban coast.Since 2008 there have been discussions about the possibility of a large offshore oil deposit near the northern

coast of Cuba. Venezuelan company PdVSA, the Malaysian Petronas, Russian Zarubezhneftand the Spanish Repsol haveexplored the area and decided, in 2012, that there was no commercially usable oil. But in December Zarubezhneft started a

second round of explorations in a deeper area. The second round of tests will wrap up in June, but the results couldtheoretically be available already.If Zarubezhneft does find oil, it is entitled to sign an agreement with theCuban state-owned oil company, Siret, to share exploitation of the deposits from now until2034.Zarubezhneft did not comment on the issue. Local sources said there was no news on the second round of explorations.Regardless, Russias rush to complete the debt-restructuring process by Sept. 2013 could be relatedto the possibility of major oil reserves in Cuban coastal waters. Regardless of the oil situation, Russia istrying to restore active trade with Cuba. The Federal Customs Service has already signedagreements with Cuba on information sharing and preferential tariffs. Cuba has also signedseveral contracts to purchase Russian airplanes. Hardly a return to the Cold War bustle between the two countries,but it was time to get back to business.

Russia can successful drill for oil in Cuban watersMiroff 12(Nick Miroff, earned a bachelor's degree in Spanish and Latin American literatureat University of California Santa Cruz. He holds a master's degree from the Berkeley GraduateSchool of Journalism. Pulitzer Prize Winner , Russian for Cuba's oil , June 28, 2012http://www.globalpost.com/dispatch/news/regions/americas/cuba/120627/russia-oil-rig-drill-cuban-oil-zarubezhneft-songa-mercur //AR)

HAVANA, Cuba For 30 years, generous oil subsidies from Moscow kept the lights on for Fidel Castros Cuban Revolution. Until

the Soviet Union went kaput.Now, Russian state oil companies may be coming to Cubas rescue again.Oil
http://www.globalpost.com/dispatch/news/regions/americas/cuba/120627/russia-oil-rig-drill-cuban-oil-zarubezhneft-songa-mercurhttp://www.globalpost.com/dispatch/news/regions/americas/cuba/120627/russia-oil-rig-drill-cuban-oil-zarubezhneft-songa-mercurhttp://www.globalpost.com/dispatch/news/regions/americas/cuba/120627/russia-oil-rig-drill-cuban-oil-zarubezhneft-songa-mercurhttp://www.globalpost.com/dispatch/news/regions/americas/cuba/120627/russia-oil-rig-drill-cuban-oil-zarubezhneft-songa-mercur


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industry journals reported this week that a Soviet-built, Norwegian-owned drilling platform is headed forCuban watersthis summer, under contract with Moscow-based state company Zarubezhneft.The company has hiredthe rig, called the Songa Mercur, at a cost of $88 million for nearly a year, with plans to begin drilling inNovember. That should be enough time to poke plenty of holes in search of Cubas elusive underseaoil fields, which are thought to hold billions of barrels of crude but have yet to yield a decentstrike.The rigs arrival couldnt come at a better time for the Castro government and its state oil

company,CubaPetroleo. The state firm has signed multiple contracts in recent years with foreign producers looking to drill inCuban waters.Another drilling platform, the Scarabeo 9, has been working off the islands north coast this year, but has come updry, dealing a blow to Havanas hopes for weaning the island off imported crude.Cuba currently gets about two-thirds of its fuelfrom socialist ally Hugo Chavez. But the Venezuelan president has been battling cancer and must campaign for re-election in

October.The Scarabeo 9 has been Cubas best hope.The Chinese-built, Italian-owned rig arrived late last year,opening a gusher of anxieties in the US. Environmental groups and Florida tourism operators worried about damage from a

potential spill. Anti-Castro lawmakers worriedan oil strike would give the Cuban government a cashwindfall.Repsol, the Spanish oil company that first hired the rig, was the subject of hearings on Capitol Hill, and the Obamaadministration made the unusual move of sending an inspection team to visit the platform when it stopped in Trinidad en route to

Cuban waters.But the state-of-the-art Scarabeo 9 was made for the Cuba job literally. It is the onlyrig in the world designed specifically to comply with US trade sanctions against Cuba, which limit theamount of US technology that can be used in Cuban territory to no more than 10 percent.So far the rig has come up empty inCubans waters. Having spent more than $100 million for a dry well and a political headache, Repsol executives have announced

theyre pulling out of Cuba.Scarabeo 9 is now in the hands of Russias Gazprom Neft, which is drilling

in Cuban waters at another offshore location in partnership with Malaysias Petronas. Results maybe announced as soon as next month.The Songa Mercur will beworking much closer to shore. Built in 1989 at the Soviet UnionsVybord Shipyards, its maximum drilling depth is just 1,200 feet of water, according to the rigs specifications.Jorge Pion, anexpert on Cuban oil exploration at the University of Texas, said the Songa Mercur was retrofitted and modernized in 2006 inGalveston, Texas, after it was purchased from a Mexican firm by Norways Songa Offshore SE. Its currently working in Malaysia.Unlike the Scarabeo 9, the Songa Mercur is loaded with US technology, including five Caterpillar generators, General Electric mudpump motors, and cementing equipment made by Halliburton. That will likely leave Russian operator Zarubezhneft in violation ofthe US Cuba sanctions, Pion said.Not that theres much the US government can do about it.This is a Russian state oil company,and they do not have US assets or interests to safeguard, said Pion, a former British Petroleum executive.

Russia has lesgislation in place to prevent oil spills and to minimizethe impacts of spillsRIA Novosti 12(RIA Novosti June 21 2011 (RIA Novosti) Russian govt plans to tighten rules

on prevention of shelf oil spills http://en.rian.ru/business/20110621/164749264.html //AR)The Russian government plans to entrust oil companiesworking on the continental shelfwith the duty ofpreventing spills and eliminating consequences,the government said on Tuesday.Authorities plan toamend federal laws on the Russian continental shelf and on internal sea waters, inland seas and Russia's contiguous zone.In particular, under the draft of the law, companies will be obliged to have plans on the preventionand elimination of oil and oil product spills.Moreover, the companies working on the shelfwill haveto verify their financial ability to carry out measures aimed at preventing and eliminatingaccidental oil spills, including the possible attraction of additional forces and funds. The companies will also haveto fully compensate for damages, including aquatic bioresources and third parties.The newrules will be applied to companies usingman-made islands, facilities and installations, offshore pipelines,aswell as to those companies carrying out drilling operations, transportation and storage of oil and oil products on the Russiancontinental shelf, in internal seas and other inland waters.In April 2010, five million barrels of oil poured into the Gulf of Mexico,damaging the fragile wetlands of Louisiana, washing oil products ashore in Mississippi, Alabama and Florida and hitting coastalindustries including fishing and tourism.The spill was stopped only on August 4

Russia leads the way for oil spill preventionRIA Novosti 13(RIA Novosti Arctic Council Signs Oil Spill Response Deal,5/12/2013,http://en.rian.ru/russia/20130515/181163818.html //AR)KIRUNA, May 15 (RIA Novosti) Foreign ministers from the Arctic Councils member states have signeda legally binding agreement on preventing and responding to oil spills in the Arctic to protect theregions waters, Russian Foreign Minister Sergei Lavrovsaid on Wednesday.The treaty is aneffective tool protecting theArctic environment at a time of active exploration of the openingArctic
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deposits, and shows the firm responsibility of the Arctic states for the situation in the region, Lavrov said at the openingof thecouncils ministerial session in Swedens northernmost city of Kiruna.Lavrov said he welcomed the decision to expand the councilby granting the so-called observer status to new states. China, Italy and four other Asian countries - India, Japan, South Korea andSingapore - gained observer status on the Council at a meeting on Wednesday. The Council also said it positively viewed the idea ofgranting the European Union observer status. However, a decision on the EU status has been deferred because of Canadas concernover an EU ban on import of seal products, which came into effect in August.Interest in the Arctic is on the rise. In particular, thisis confirmed by the growth of the number of aspirants seeking to obtain an observer status in the Arctic Council, Lavrov said.GaoFeng, head of China's delegation to the event, told Xinhua after the decision granting China's observer status was announced: "China

will first get to know the Arctic better, and then it will be able to join in international cooperation effectively."The Arctic Councilintergovernmental forum, comprising Canada, Denmark, Finland, Iceland, Norway, Russia, Sweden and the United States, wasestablished in 1996 to protect the Arctic region's environment and its indigenous peoples.Russia has stepped up exploration of itsArctic oil and gas reserves in recent years, and has signed agreements with international partners including Shell, Statoil, Total and

ExxonMobil to help exploit the regions natural resources. RIA Novosti.National claims to the Arctic shelfButenvironmental activists claim accidents in the area could have dire consequences, both becauseof fragility of the Arctic ecosystem and the complexity of cleaning up spills in remote areas.The

Arctic has also become an increasingly important region in economic and political terms thanksto climate change. The Arctic territories, believed to hold vast untapped oil and gas reserves, have been the subject of claimsby the United States, Russia, Canada, Norway, and Denmark, with rising temperatures leading to a reduction in sea ice makinghydrocarbon deposits under the Arctic Ocean increasingly accessible.

Russia Relations to Cuba key to the Cuban Economy and Offshore

drillingLyakhov and Korotun 13(Alexei Lyakhov, Lada Korotun, writers for the voice of Russia,Russia-Cuba ties are seeing renaissance - official http://english.ruvr.ru/2013_05_19/Russia-Cuba-ties-are-seeing-renaissance-official/19 May, 16:44 //AR)

Matviyenko has also praised the expansion of bilateral partnership, trade,

economic, scientific and humanitarian cooperation between the countries. "The

Russian Senate delegation came to Havana to upgrade and boost parliamentary cooperation betweenthe two countries. We discussed a number of issues during a two-hour talk, including FidelCastros health, Valentina Matviyenko told reporters on her flight back to Moscow, adding thatComandante is feeling ok and is following a strict regime under tight medical supervision."

Apart from being Russias important strategic partner Cuba is also its good and reliable friend,Valentina Matviyenko said. "Our countries have special bonds of fraternity and mutual respectand Russia has really warm and sincere feelings for Cubans. We love our Cuban friends and areready for cooperation. Havana and Moscow became close allies under Fidel Castro and 2013marks 50 years since his first visit to the USSR the event is celebrated in Moscow and someother Russian cities. Now bilateral cooperation is on the rise and is mainly focused on trade andeconomy. Though last years trade turnover accounted for some modest 220 mln dollars we havea great potential to expand it." The streets of Havana have many signs of long-lastingfriendship like Soviet-made cars. Despite Cubas turn to foreign investors, the US doesnt hasteto lift its sanctions so Havana eyes working with Russia. Esteban Lazo, president of CubasNational Assembly, spoke about the prospects of bilateral energy cooperation, like Russias handin constructing new units and supplying equipment for Cuban power plants which were built

with the aid of Soviet Union. Havana also expects Moscows help in exploring oil in its Gulf ofMexico wells and further construction of refineries. Russias investments in Cubas oil sectorare really important and we expect other Russian companies, not only Zarubezhneft, joining theprocess. Cuba also eyes cooperation with Russia in nickel production, tourism and agriculture as

well as measures to refurbish and upgrade Mariel and Santa Cruz del Norte power plants.Russia and Cuba are long-term partners. Thus, Cubana air carrier uses Russian Tupolev Tu-204planes. Cuba has imported some worth 12 mln dollar power plant equipment from Russia in thelast three years and has recently resumed purchase of Russian tractors. Russian tourists arealso contributing to Cubas economic revival- some 90,000 holiday-makers from Russia visited


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the Island of Freedom last year Read more: http://english.ruvr.ru/2013_05_19/Russia-Cuba-ties-are-seeing-renaissance-official/


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Drug War

Russia solves the drug trade regional expertise and it increasesinfluenceBargent 13(James Bargent, independent journalist, 3-20-13, Russia Looks to IncreaseInfluence in Latin America Drug War,http://www.insightcrime.org/news-briefs/russia-influence-latin-america-drug-war) gzRussia is to step up multilateral cooperation in counternarcotics operations in Latin America, in

what may also be a play to increase its geopolitical influence in the region. The director ofRussia's Federal Narcotics Service, Viktor Ivanov, announced plans to work with several Latin

American countries in carrying out joint counternarcotics operations, training law enforcementagencies, improving user rehabilitation facilities, and helping develop common anti-drugpolicies. Much of that investment will be in Nicaragua, where Russia is setting up an anti-drugtraining center, which will see Russian law enforcement experts train agents from sevencountries in areas such as tactics and use of technology. Ivanov also announced plans toincrease security cooperation with Peru, and, in the coming year, begin training, informationexchange, and joint monitoring of trafficking operations. Ivanov added that Moscow police hadidentified trafficking routes into Russia in which cocaine is concealed in plantain shipmentsleaving Ecuador or in Colombian flowers shipped to Russia from via the Netherlands. He alsohighlighted West Africa as an increasingly popular transit point.
http://www.insightcrime.org/news-briefs/russia-influence-latin-america-drug-warhttp://www.insightcrime.org/news-briefs/russia-influence-latin-america-drug-warhttp://www.insightcrime.org/news-briefs/russia-influence-latin-america-drug-warhttp://www.insightcrime.org/news-briefs/russia-influence-latin-america-drug-warhttp://www.insightcrime.org/news-briefs/russia-influence-latin-america-drug-war


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Mexico

Russia should engage Mexico recent success means Nieto wantsmore cooperation

SRE, 10(Secretary of Exterior Relations, Ministry of Foreign Affairs, Mexico; THEFOREIGN MINISTRY HOLDS A SEMINAR ON OPPORTUNITIES IN THE MEXICO-RUSSIARELATIONSHIP,http://www.sre.gob.mx/en/index.php?option=com_content&view=article&id=1794:the-foreign-ministry-holds-a-seminar-on-opportunities-in-the-mexico-russia-relationship&catid=27:archives&Itemid=64)//HO Trade between the two countries has grown over 200 percent in the past two years . Russia isnow the third largest export market for Mexican meat products .The Directorate General of InternationalCooperation and Economic Development of the Mexican Agency for International Development (AMEXCID) organized aseminar on "Opportunities in the Mexico-Russia Relationship."The event was chaired by Mexicos newambassador in Russia, Ruben Beltran.Representatives from various Mexican companies interested in doing

business with Russia, from the Mexican Business Council for Foreign Trade, Investment and Technology (COMCE) andProMxico attended.In the last three years, the economic relationship between Mexico and Russiahas expanded significantly in the areas of tourism, trade and investment.Particularly, over the lasttwo years, bilateral trade increased by 219 percent. Russian tourism to Mexico has increasedfrom27,000 in 2010 to 42,000 in 2011 and nearly 45,000 in the first half of 2012. This increase has been made possible in part by the

establishment of several direct flights between the two countries.This dynamism can also be seen in exports suchas food and beverages, pharmaceuticals and auto parts.As a result of these trends, Russia has become the thirdlargest export market for Mexican meat.The private sectorrepresentatives at the seminar stressed the greatpotential of the two emerging economies, especially in strategic sectors such as the energy,automotive, food and high value-added industries.There was a fruitful exchange of experienceson best practices to drive business with Russia. This seminar arises from the instructions ofPresident Enrique Pea Nieto that foreign policy must contribute to Mexicos goals in the five strategic areashe has outlined, including promoting development through trade, reciprocal investment andcooperationwith priority countries, as well as ensuring that Mexico acts with global responsibility.

Mexico wants a bigger investment relationship with RussiaArriola, 11(Roberto, Vice-President of Edelman Public Affairs Latin America, BA inPolitical Science and Public Administration and a Master in Communication at the UniversidadIberoamericana, Mexico Mexico and Russia Strengthen Their Bilateral Relations,http://publicaffairslatinamerica.com/2011/06/mexico-and-russia-strengthen-their-bilateral-relations/)//HO Foreign Secretary Patricia Espinosa made an official visit to Moscow and St. Petersburgon June 27-28 at the invitation of the Russian government and in reciprocity for the visit to Mexico by Russian Foreign Minister Sergey Lavrov

in 2010. The Foreign Secretarys visit was to promote the political dialogue and bilateral economicrelationship and to strengthen all aspects of cooperation between the two countries.During themeeting between the two officials, they agreed to seek a meeting between Presidents Felipe Caldern Hinojosa and Dmitry

Medvedev, as the high point of the celebrations of the 120th anniversary of diplomatic relations between Mexico and Russia. Foreign

Secretary Espinosa announced that the Mexican government has made the policy decision toconsider Russia as a market economy, and will seek to increase the economic exchanges

between the two countries to achieve the potential of their economies.On economic and trade matters,the Foreign Secretary said that the Mexican government would continue working with Russianauthorities to make the investment relationship grown on a par with the bilateral traderelationship.She reiterated Mexicos interestin establishing itself as a popular destination for Russian tourists. She noted thatjust last April, Russian tourism to Mexico had increased almost 40% over the same month of 2010.During her visit to St.Petersburg, Foreign Secretary Patricia Espinosa was received by the Lieutenant Governor of the City of St. Petersburg, Oseevsky


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Mikhail Eduardovich, whom she thanked for organizing the Mexican cultural days in St. Petersburg from June 2-5, 2011. She also

reiterated Mexicos interest in having more of aneconomic and cultural presence in that important Baltic port.Russia isMexicos largest trading partner from among the European countries that are not part of the European Union (EU) orthe European Free Trade Association (EFTA); the leading exporter and importer; and ranks 30th at theinternational level.


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Renewables

Russia increasing incentives for Renewable energy development nowRoca 5/24/13 (Marc, reporter at Bloomberg, May 24 2013 Russia Approves SubsidyProgram to Boost Renewable-Energy Outputhttp://www.bloomberg.com/news/2013-05-24/russia-approves-subsidy-program-to-boost-renewable-energy-output.html)DFRussia approved an incentive program to boost renewable-energy production, targeting almost6 gigawatts of new capacity by 2020and its first solar parks.The government yesterday signed adecree that includes measures to support wind, photovoltaic and small hydropower projectsacross the country, Dmitry Babanskiy, a spokesman for the Energy Ministry, said today by e-mail.The measures willincrease the proportion of renewable energy to 2.5 percent of power generation by 2020 from0.8 percent now, he said.

Russia has cost effective renewablesMartinot 99(E. Martinot, Energy Efficiency and Renewable Energy in Russia: Perspectivesand Problems ofInternational Technology Transfer and Investment. Ph.D. dissertation.University of California at Berkeley, Renewable energy in Russia: markets, development andtechnology transfer12 January 1999 *page 1 http://www.martinot.info/Martinot_RSER3.pdf//AR))

Five potential markets in Russia offer commercial opportunities for renewable energythat arenearly

cost-competitive with conventional forms of energy grid-connectedelectricity from wind

power, electricity for villages and small settlementsfrom hybrid winddiesel and biomass, district heating forbuildings from biomass, hot water for buildingsfrom solar thermal, and electricity and heat from geothermal. Over the lastseveral decadesthe Soviet Union conducted research and development on several forms of

renewableenergy. Technological infrastructure, scientic and technical knowledge,

engineering andtechnical skills, and factories and equipment are all well-

developed assets . But thetranslation of these assets into commercial renewable energy technologies and markets is aproblem because associated market-oriented skills and institutions are still lacking. Manybarriers also exist, including lack ofinformation and demonstration experience, lack oflong-term commercial nancing, a perceived climate of high investment risk,technologyacceptance, some direct and indirect energy price subsidies (most energy prices have risen to `market'' levels), utilitymonopolies and the absence of operational regulatory frameworksfor independent power producers, and historical enterprisespecialization. Marketintermediation is very important for renewable-energy investments and technology transfer,providing the

knowledge, information, skills, services, nancing, and analysis that isnecessary to overcome barriers. Joint ventures withforeign multinational corporationsrepresent another important means for overcoming

barriers, one that takes advantage ofRussian technological capabilities. Four case studies illustrate themost prominent examplesof renewable energy technology transfer with Russia, Ukraine, and the Baltic States duringthe period19921996. # 1999 Elsevier Science Ltd. All rights reserved

Russia has the tech capabilities for renewablesMartinot 99(E. Martinot, Energy Efficiency and Renewable Energy in Russia: Perspectivesand Problems of International Technology Transfer and Investment. Ph.D. dissertation.University of California at Berkeley, Renewable energy in Russia: markets, development andtechnology transfer 12 January 1999 Page 57http://www.martinot.info/Martinot_RSER3.pdf//AR))
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Russia has technological capabilities that parallel most developed countries.

Technological infrastructure, scientic and technical knowledge, engineering andtechnicalskills, factories and equipment are all well developed. Substantial56 E. Martinot / Renewable andSustainable Energy Reviews 3 (1999) 4975evidence indicates that Russian capabilities to developand produce mostrenewable energy technologies are excellent. Capabilities to install, operate,andmaintain these technologies are also highly developed. Nevertheless, there are twopersistenttechnological shortfalls: (a) production technology lags behind Westernlevels, especially in the degree of automation and qualityassurance; (b) there isevidence to suggest that specic components and materials needed for renewableenergy technologies mayneed to be imported (e.g., electronics, berglass, epoxyresins, and other composite materials) because development of thesematerials inthe Soviet economic system lagged behind the West. In particular, the lag incomputers, electronics, and modernmaterials has been well documented [25].

Russia has effectively developed renewable energy use for thosewithout energy accessIFE No date(IFC, a member of the World Bank Group, is the largest global developmentinstitution focused exclusively on the private sector in developing countries.IFC SupportsRenewable Energy Projects in Russias Far East

http://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/cb_home/news/feature_russiaadvisory_mar2013//AR)

IFC has signed an advisory services agreement with eastern Russiaslargest energy supplier todevelop renewable energy sources in isolated areas of the country, part of an effort to decreaselocal dependence on imported fuel and cut greenhouse gas emissions.IFC will help RAO Energy Systemof East identify renewable energy opportunities in Russias Far East Federal District. Through its Russia Renewable EnergyProgram, IFC will also support the joint-stock company as it reviews local regulations and identifies investment opportunities.

The agreement with IFC will help usintensify our work in renewable power generation,said Alexey

Kaplun, Deputy CEO of RAO Energy System of East. With the very high cost of fossil fuel in areas

with decentralized power supplies, it is important to develop renewable energy as

an environmentally friendly and cost-effective power source for manycommunities in the Far East. The agreement is part of IFC's efforts to support climate-conscious private

businesses in Europe and Central Asia. Renewable energy is a cost-effective alternative to fossil fuels inmany regions of Russia,said Tomasz Telma, IFC Director for Europe and Central Asia. Partnerships with strong localplayers, like RAO Energy System of East, can help us bring affordable green power to people livingin isolated areas of the country.In fiscal year 2012, IFC invested $436 million in 22 companies to support climate-friendly investments in renewable energy, energy efficiency, and water provision across Europe and Central Asia. IFC oversees 37advisory projects that aim to increase investment by providing advice to governments and businesses. IFC also works to reduce itsenvironmental footprint by making its regional facilities carbon-neutral.Russia became a member and shareholder of IFC in 1993.Since then, IFC has invested more than $10 billion in the country, including $3.2 billion in syndicated loans, and has been involvedin 270 projects across a variety of sectors. IFCs investment portfolio in Russia stands at $2.3 billion, the fourth-largest countryexposure for IFC globally


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Soft Power

Russia solves Latin American soft powerAstrada and Martn, 4/26(Marvin Astrada, PhD in International Relations fromFlorida International University, taught International Relations courses at Florida InternationalUniversity and Miami Dade College; Flix Martn, Associate Professor of International Relationsat Florida International University, PhD in International Relations from Columbia University;Russia and Latin America: From Nation-State to Society of States, Palgrave Macmillan, Apr26, 2013, page 28)//HOAlthough Russias approach to the region may not be as fully developed as its policy and approach to Europe, Russia and LatinAmerica are pursuing agendas via intensive and extensive CCNs rooted in formal(legal)agreements based on trade and investmentin the broadest sense of the terms.According to the Russiangovernment, developing and enhancing CCNs with the region is a cornerstone of its long-termforeign policy interest. Russian engagement is based on pragmatic, strategic, economic, andnon-military or security concerns(e.g., strengthening civilian travel and cultural exchange ties) that reflects thecloseness of Russian-Latin American views on key issues in world politics and economics, withCCNs being key to facilitating collective and concerted action with regard to the generally recognized norms of international law,

cultural and historical traditions." Of consequence for the region, in addition to the establishment of CCNs in energy, resourceexploration, space technology, trade, tourism, military-to-military partnerships, military ordinance, and Russias strategic visionunlike the previous Soviet strategic visionis based on fostering a multi-polar world (in contrast to the bipolar structure that

dominated global affairs from 19451992). Russias cooperative partnerships with Latin America constitutea concrete step in laying the cornerstone of a new geopolitical order based on multilateral

values, a New World Order."4 Multipolarity, in large part, is based on societal notions of world order andthe use of CCNs to facilitate a multipolar world, since multipolarity bases international relations on non-coerciveengagement. Given the aim of Russiasforeign policy, its approach to Latin Americathus has significantconsequences for the region. In general, Russian strategy in Latin America has been viewed by some commentators as ageopolitical approach directed against the US. with an economic component, rather than an economic approach to foreign policywith strategic objectives . . . Moscow poses [a threat] to the region . . . from its weapons sales to Venezuela, which the latter is using

in support of insurgency in Colombia if not elsewhere.Yet, Russian engagement can also be viewed from a soft-power perspective that entails additional non-militarysecurity objectives. In addition to military-securitythreats, Russian engagement on the soft-power level may be viewed as part of a strategy to presentthe region with an alternative major trading partner. Russia competes with China and the US, among other statesfor Latin American markets. This undermines tacitly the legitimacy" of having there being a single dominant power outside ofLatin

America and the Caribbean. That is, [t]he US. Russian engagementvia CCNs may be viewed as effectivelyutilizing soft-power resources and networks to complement any military-security in the region

via diplomacy, trade, investment, security alliances, energy, and other types of cooperativepartnerships. Since 2000 Russia gradually restored its presence in the region, integrating itself into the region's affairs relatedto commercial, legal, technological, political, cultural, and in resource development and exploitation activities.


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Venezuela

Russia solves previous Venezuela oil investment dealsEl Universal1/29/13(Spanish new agency noticias Minuto a Minuto sobre Mxico.Venezuela signs new oil cooperation agreements with Russiahttp://www.eluniversal.com/economia/130129/venezuela-signs-new-oil-cooperation-agreements-with-russia)DF

Rafael Ramrez, the president of Venezuela's state-run oil company Pdvsa, said new energycooperation agreements have been entered into by Venezuelan and Russia.After a meeting withRussian state-run company Rosneft,two memoranda of understanding were signed. The first one aims atthe development of offshore oil projects in the Gulf of Paria(northeast Venezuela), whereas the secondone intends to develop offshore gas areas in Ro Caribe and Mejillones, northeast.An additionalinstrument was initialed for the construction of joint ventures in the area of services. Theagreement includes a drills supply agreement across the country.

Agreements provePDVSA 12(Petrleos de Venezuela (S.A.) Russia and Venezuela sign eight new oil cooperation agreements 9/28http://www.pdvsa.com/index.php?tpl=interface.en/design/salaprensa/readnew.tpl.html&newsid_obj_id=10529&newsid_temas=1) DF

The Russian Federation and the Bolivarian Republic of Venezuela strengthened bonds offriendship with the signing of eight agreements to develop the Carabobo areain the Faja del Orinoco(FPO), and agreed the construction of a thermal power plant in Venezuela, which will process 300megawatts(MW). The plant will work with petroleum coke from oil production process.Hugo Chvez, the President of theBolivarian Republic of Venezuela, said from the Miraflores Palace, the official seat of the Executive Office in Venezuela that, theestablishment of Petrovictoria joint venture, the construction of oil infrastructure, projects to

boost gas development, and the creation of a drilling company which is also specialized in

rehabilitation of oil wells and rig repair are among the most important agreements.For the firsttime in history, a Russian company extracts oil in the Americas. This is due to geopolitical factors, because the Yankee Empire hadan iron grip on this land. Now, there are companies from China, Russiaand also from the United States, said theVenezuelan Head of State.President Chvez talked about early production of oil in the first well of Miranda 1 multiple directionaldrilling platform (macolla), run by Petromiranda, a joint venture, at the FPO. The estimated production capacity is 1,200 barrels per

day of crude oil. Oil production should start next year; however, we have moved forward and we are producing inJunn 6 Block with PetroMiranda. Herewe have the worlds biggest oil reserves while Russia has one of thelargest oil deposits in the world.We are two oil giants.We are currently producing 3 million barrels of oil per day.

We should produce 4 million barrels in 2014and 6 million barrels in 2019. It is possible because weregained independence, Chvez stated.For its part, Rafael Ramrez,the Peoples Minister of Petroleum and Miningandpresident of State-run oil companyPetrleos de Venezuela, S.A. (PDVSA), highlighted that the new

bilateral agreements signed by Venezuela and Russia have a great scope. We consider that thecooperation between the Russian Federation and the Bolivarian Republic of Venezuela has

reached a major breakthrough. It will provide a major boost to the projects we are currentlyworking onat the FPO.Ramrez said that the Petrovictoria joint venture is an important agreementthat will allow us, Russian oil companies and PDVSA, to start production of 450,000 barrels ofoil, in addition to the 450,000 barrels of oil produced by Petromiranda."

Russia wants to invest Latin America EnergyPea and Baradello 12(By Federico F. Pea , a Senior Advisor at Vestar CapitalPartners practiced law, served in the Colorado State House of Representatives, served as Mayor
http://www.eluniversal.com/economia/130129/venezuela-signs-new-oil-cooperation-agreements-with-russiahttp://www.eluniversal.com/economia/130129/venezuela-signs-new-oil-cooperation-agreements-with-russiahttp://www.pdvsa.com/index.php?tpl=interface.en/design/salaprensa/readnew.tpl.html&newsid_obj_id=10529&newsid_temas=1http://www.pdvsa.com/index.php?tpl=interface.en/design/salaprensa/readnew.tpl.html&newsid_obj_id=10529&newsid_temas=1http://www.eluniversal.com/economia/130129/venezuela-signs-new-oil-cooperation-agreements-with-russiahttp://www.eluniversal.com/economia/130129/venezuela-signs-new-oil-cooperation-agreements-with-russia


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of the City and County of Denver, founded an investment advisory firm, and served in twocabinet positions in the Clinton Administration as Secretary of the Department of Energy andSecretary of the Department of Transportation, a leading global private equity firm and FedericoC. Baradello, ross-border private equity and venture capital experience and a background in

business, law, and public policy in the U.S., EU, and Latin America. Ph.D. from the LondonSchool of Economics, an M.P.P. from Harvard Universitys Kennedy School, a bachelors degree

from Princeton Universitys Woodrow Wilson School, and this May completes his J.D. from theUniversity of California, Berkeley School of Law The Huffington It's Time to Tango: The Case fora Reinvigorated Western Hemisphere Energy Strategy, The Huffington Post 4/14/2012http://www.law.berkeley.edu/13223.htm)

While the U.S. has engaged in these multilateral and bilateral initiatives, countries including China andRussia haveaggressively invested billions of dollars in Latin America's energy industries. For example, in early 2011,Sinopec, China's largest oil refiner, formalized a $7 billion contract to buy a 40 percent stake in the Brazilian operations of Repsol,Spain's largest energy company. Sinopec's main rival, the China National Offshore Oil Corporation, is now preparing a major offer to

take over Repsol's stake in YPT, Argentina's main oil and gas company. Earlier this year, Russia and Venezuelaannounced a joint venture between Venezuela's state-owned oil company Petroleos de

Venezuela and Russia's Gazprombank, a subsidiary of Russian energy giant Gazprom.As part of the deal,Gazprombank took 40 percent ownership of a joint venture that seeks to "strengthen energy

operations" in oil-rich eastern Venezuela. These investments, among many others, demonstrate that these countriesview Latin America as an important region for their energy security. For the U.S. to protect its energy security in the WesternHemisphere, it will need to devise a bold public-private strategy to leverage its massive energy consumption market, and itsproximate location, into a long term competitive advantage. In addition to deepening existing multilateral and bilateral initiatives,the U.S. can strengthen and expand bilateral energy arrangements across Latin America. According to a 2007 United Nations study,Latin America will require $1.3 trillion in energy sector investment by 2030. In a time of record profits for U.S. energy companies,this presents an opportunity for the U.S. to leverage its ample supply of risk capital, its technological expertise, research institutions,

and national laboratories to develop strategic partnerships that invest in Latin America's energy potential. This new energyinvestment can provide perhaps the most significant engine of growth and development in aregion that has continued to defy skeptics by prospering while much of the Western world hasfaltered in recent years.Ultimately, any initiative for increased economic ties with Latin America will need to come from theUnited States. While other issues, including poverty and inequality, public security, and migration will continue to be importantthemes in U.S.-Latin America relations, America's immediate energy security imperatives motivate serious engagement today. TheWestern Hemisphere's vast energy potential is on the dance floor. Does the U.S. care to tango? 4/14/2012

Russia solves recent cooperation with Venezuela proves**Specifically solves drug trafficking and energy development

Global Research, 10(RIA Novosti, citing Bolivian President Evo Morales and VladmirPutin; Rapprochement between Russia and Latin America: Bolivian Ministers to Visit Moscowin Late April, 4 April 2010, http://www.globalresearch.ca/rapprochement-between-russia-and-latin-america-bolivian-ministers-to-visit-moscow-in-late-april/18487)//HO

A delegation of top-ranking Bolivian officialswill visit Moscow on April 26 for talks on energy, military andindustrial cooperation, Bolivian President Evo Morales has said.The delegation will include heads of leading ministries, who areto discuss and sign intergovernmental agreements with their Russian colleagues, Morales said afterreturning to La Paz from the Venezuelan capital, Caracas, where he met with Russian Prime Minister Vladimir Putin.We take as a

premise that Russia should return to Latin America, and that is why [we] are positively seeking to

expand diplomatic, economic, and trade relations with Moscow, the Bolivian leader said.After the meetingwith Putin, which was initiated by the Bolivian side, Morales told journalists that Moscow had agreed to lend Bolivia$100 million to buy Russian helicopters to help tackle drug trafficking.He also saidconsiderable progress had been made in enhancing bilateral cooperation in the energy sphere.The Russian prime minister arrived in Venezuelaon Friday for talks on a range of issues includingmilitary-technical cooperation and joint business projects primarily in the energy sphere.Aftertalks withVenezuelan President Hugo Chavez, Putin said Russia was ready to grant Venezuela a $2.2-

bln loan, which Chavez had requestedduring his visit to Moscow last year.The prime minister also said Russia wouldcontinue deliveries of military equipment to Venezuela to help the Latin American country boost its national defense.
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Russia is already cooperating with Venezuela and wants to increasetiesXinhua, 3/8(Xinhua News Service, citing Putin, Maduro; Russia, Venezuela pledge tocontinue strategic partnership, 8 March 2013, http://europe.chinadaily.com.cn/world/2013-03/08/content_16292655.htm)//HORussian President Vladimir Putin andVenezuelan Acting President Nicolas Maduro pledged to further bilateralties in a phone conversation, the Kremlin said Friday.Extending his condolences and sympathy to the Venezuelanleadership and people over the death of President Hugo Chavez, Putin said he was convinced that the mutually

beneficial cooperation and friendship between the two sides would develop further "in theinterest and for the benefit of the two peoples ," according to a Kremlin press statement.For his turn, Maduroassured Putin of the continuity of bilateral strategic partnership, it said.Earlier, the Kremlin said IgorSechin, head of Russia's oil giant Rosneft, would attend Chavez's state funeral on behalf of the Kremlin, due to "his active role in

bilateral cooperation in energy, banking and other spheres."

Russia has the technical expertise nuclear power

Harding 10(Luke - award-winning foreign correspondent with the Guardian 15 October2010Russia and Venezuela strike nuclear power station dealhttp://www.guardian.co.uk/world/2010/oct/15/venezuela-nuclear-power-station-russia) DF

Russiahas agreed to help Venezuela build its first nuclear power station in a move likely to raiseconcerns in Washingtonabout increasingly close cooperation between Moscow and Caracas.President Dmitry Medvedevannounced the move at the end of a two-day visit to Moscow by Venezuela's president, Hugo Chvez. The Venezuelaneconomy is overwhelmingly reliant on oil and Chvez has said he wants nuclear power todiversify energy supply. Medvedev has implicitly acknowledged the deal is likely to be unpopular with the US but defendedVenezuela's right to seek access to peaceful nuclear technology. The station is likely to be built over the next 10-15years.Its cost has not yet been revealed."An agreement has just been signed on co-operation in the atomic sphere. I don't knowwho will shudder at this," Medvedev told a press conference after his talks with Chvez. "The president [of Venezuela] said there will

be countries in which this will provoke different emotions. But I want to say specially that our intentions are absolutely pure andopen." Russia wanted Venezuela to have a "full range of energy choices".Chvez's visit is his ninth toMoscow and the first stop on a 12-day European tour that includes visits to Belarus and, for the first time, Ukraine now once againwithin Moscow's sphere of influence. On previous occasions, Chvez has bought billions of dollars worth of military hardware fromRussia including submarines, helicopters and attack aircraft. Both leaders have reaffirmed their plans to continue military-technical

co-operation.Viktor Semyonov, an economist at Moscow's Institute of Latin American Studies, said it was logical forVenezuela to seek civilian nuclear technology since its economy was even more dependent on oilthan Russia's. Russia wasalready building a nuclear power station in Iran and holding talks with other Latin

American countries, including Brazil and Argentina. "We are a country that exports nuclear technology aroundthe world.Venezuela's economy is 94 or even 95% made up of oil. Russia's is 65%, which is alreadya lot. They(the Venezuelans)want to widen their sources of energy so they are less dependent on it,"Semyonov said.Speaking in Moscow on Thursday night, Chvez offered assurances that Venezuela had nointerest in building a nuclear weapon and only wanted peaceful nuclear technology. He described thecollapse of the Soviet Union as a "catastrophe" and launched a familiar attack on the United States, denigrating it as a "Yankee

empire".

Nuclear deal with Venezuela helps it achieve energy independenceIsachenkov 10(Vladimir syndicated reporter 10/15/10 Russia, Venezuela Reach DealOn Country's First Nuclear Power Planthttp://www.huffingtonpost.com/2010/10/15/russia-

venezuela-reach-de_n_763960.html) DF
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Venezuelan President Hugo Chavez reached a deal with Russia on Friday to build the SouthAmerican country's first nuclear plant, as questions arose why a nation rich in oil and gas would feel the need toventure into atomic energy.The two nations also signed other energy agreements. Russia has cultivatedclose ties with Chavez's government to expand its global clout and counter U.S. influence inLatin America.The ITAR-Tass news agency said Russia plans to build two 1,200 megawatt nuclearreactors at the Venezuelan plant.The cost of Friday's nuclear deal wasn't immediately announced.The dealis likely

to raise concern in President Barack Obama's administration but continues a pattern of Russia pressing to exportits nuclear expertise.Russia has just completed Iran's first nuclear power plant and recently reached new deals to buildnuclear reactors in China and Turkey. It's talking with Indian officials about building a dozen of nuclear reactors there and also

wants to build a nuclear reactor in the Czech Republic.Russian President Dmitry Medvedev sought to pre-emptquestions about why Venezuela would need nuclear power by saying the deal would helpCaracas reduce its dependence on global market fluctuations."I don't know who will shudder at this,"Medvedev said at a news conference after the signing. "The president (of Venezuela) said there will be nations that will have differentemotions about that, but I would like to emphasize that our intentions are absolutely pure and open: We want our partner Venezuela

to have a full range of energy possibilities."Venezuela relies on hydroelectric power for most of itselectricity, and a severe drought last year and in early 2010 pushed the water level at country'slargest hydroelectric dam to perilous lows. The lower levels, combined with a lack of adequate upgrades to thepower grid, prompted rationing measures for a time, including rolling blackouts.Chavez says nuclearpower is part ofhis government'splans for diversifying its energy sources.Medvedev said Russia sees nuclear

energy as a priority, despite its own hydrocarbon wealth, and described Russia's civilian nuclear technology as highly competitiveabroad."We are building many plants in different countries, so why wouldn't build such a plant inour close partner, Venezuela?" he asked. "That will offer a certain degree of independence in case of a drop in worldenergy prices."Chavez said Venezuela wants to reduce its dependence on oil and gas."Strategic cooperation with Russia gives mycountry a huge advantage," he said.The Venezuelan leader has grown close to Russia, Iran and China while assailing U.S. policies,

and his rhetoric about the need for a "multi-polar world" has resonated in Moscow."Russia and Venezuela staunchlysupport the creation of modern and fair world order, so that our future doesn't depend on the

will and the liking of just one country, its welfare and mood," Medvedev said in a veiled reference to the United States.

Russia solves Venezuelan Oil investmentBierman and Kravchenko 3/6/13 (Stephen reporter for Bloomberg News, Stepan - is a reporter forBloomberg News in Moscow. Mar 6, 2013 Putin Sees Venezuela Oil Deals Moving Ahead After Chavez

http://www.bloomberg.com/news/2013-03-06/putin-sees-venezuela-oil-deals-moving-ahead-after-chavez.html)DF

Russia expects to continue benefitting from economic ties with Venezuela via billions of dollarsin oiland weapons contracts after the death of Hugo Chavez, who led the South American country for 14 years.Aconstructive, positive and mutually beneficial agenda will remain a constant for anygovernment, as it will from the Russian side, President Vladimir Putins spokesman, Dmitry Peskov, said in theSiberian city of Novosibirsk today.Putin tapped OAO Rosneft Chief Executive Officer Igor Sechin to lead the Russian delegation toChavezs funeral on March 8, Peskov said. Sergey Chemezov, head of Rustech, a government holding company that includes severalweapons manufacturers, and Industry and Trade Minister Denis Manturov will also attend, Peskov said.Since Putin and Chavez

first met in 2001,Venezuela has become the most important overseas investment target for Russianoil companies and is on track to become the largest export market for Russian arms after India by 2015, according to ViktorSemyonov and Igor Korotchenko, analysts at the Russian Academy of Sciences and the Center for Analysis of World Arms Trade,respectively.Chavez was an outstanding leader and close friend of Russia, Putin said in a statement released by the Kremlin.The Venezuelan leader was an unconventional and strong person who looked to the future and always set the highest standard for

himself, Putin said.Worries OverblownRosneft and other Russian oil producers plan to invest $17.6billion in Venezuela to quadruple their combined output in the country to 930,000 barrels a dayby 2019, Venezuelas oil minister, Rafael Ramirez, said in January. That would be about equal to what Azerbaijan, the third-largestsupplier in the former Soviet Union, currently produces.Under Venezuelas constitution, an electionmust be held within 30 days ofthe presidents death. Vice President Nicolas Maduro will be interim president until then, Foreign Minister Elias Jaua said inCaracas. Maduro has led Venezuela since Chavez, who died of cancer, missed his Jan. 10 inauguration.
http://www.bloomberg.com/news/2013-03-06/putin-sees-venezuela-oil-deals-moving-ahead-after-chavez.htmlhttp://www.bloomberg.com/news/2013-03-06/putin-sees-venezuela-oil-deals-moving-ahead-after-chavez.html


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Solvency Differentials


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Cuba

Cuba rejects the US and accepts aid from Russia empiricsLacey, 8(Mark, Cuba Rejects American Offer of Hurricane Aid, The New York Times, 6September 2008http://www.nytimes.com/2008/09/07/world/americas/cubaforweb.html?_r=0)//HOThe Cuban government turned down Washingtons offer of hurricane assistance Saturday,saying the best way for the United States to help Cuban victims of Hurricane Gustav would befor it to lift the economic embargo on the island. Cuba said it had its own experts on the job

while rejecting the State Department offer to send disaster specialists to assess the damages tothe western Pinar del Rio Province and the Island of Youth. On Wednesday, Thomas A.Shannon Jr., assistant secretary of state for Western Hemisphere Affairs, told the CubanInterests Section in Washington that the United States would aid Cuban victims with $100,000in immediate aid and more once the extent of the need was known. The aid, State Departmentofficials said, would be sent through non-governmental organizations and not to the Cubangovernment. But Cuba said that the trade embargo costs the island yearly damages that exceedthe billions of dollars in destruction that it attributes to Hurricane Gustav. Cuba has accepted

hurricane assistance from Russia, Venezuela and other allies. Such aid has frequently taken on apolitical dimension between Cuba and the United States over the years. The only correct andethical action, Cubas Foreign Ministry said in a statement, would be to end the ruthless andcruel economic, commercial and financial blockage imposed against our Motherland for almosthalf a century.

Venezuela will say no to the plan Russia key to solveHISCOCK 13(GEOFF HISCOCK Russia deepens Venezuela oil tieshttp://www.theaustralian.com.au/business/mining-energy/russia-deepens-venezuela-oil-ties/story-e6frg9df-1226577701328From: The Australian February 14, 2013//AR)

WHILE the United States forges ahead with its shale-led energy revolution, Russia is steadily building up its stake in the oil industryof Venezuela, where anti-American rhetoric has been the hallmark of now-ailing leader Hugo Chavezs 14-year rule.IgorSechin, president of Russias state-owned oil giant Rosneft, declared last month the oil-richSouth American country would be the main focus of Rosnefts overseas investments.Under a seriesof accords signed during Sechins visit to Venezuela on January 29-30, Russia will commit to invest up to $US40

billion in jointly exploiting the Orinoco extra-heavy oil belt -- regarded as one of the worldslargest hydrocarbon reserves --with Venezuelas state-owned Petroleos de Venezuela SA (PDVSA).The USGeological Survey estimated in 2010 that the Orinoco belt, a 600-km strip straddling the Orinoco River in the central-eastern part ofVenezuela, held 513 billion barrels of technically recoverable oil. According to OPEC statistics, Venezuelas proven reservesstand at296 billion barrels, the largest in the world.Digital Pass $1 for first 28 DaysIt also has 5.5 trillion cubic metres of gas reserves,ranking it No. 8 in gas behind Russia, Iran, Qatar, Saudi Arabia, Turkmenistan, UAE and the US.Venezuela relies heavily on its oilexports, which supply 95 per cent of its foreign earnings. Output, which was above 3 million barrels a day in the 1990s and early2000s, has since fallen below that figure, although Venezuelas stated goal is to reach 5 million barrels a day by 2015 and 6.5 millionby 2020, through development of the Orinoco belt. Venezuelas heavy sour crude remains in demand with some refiners because it ischeaper than light sweet crude.Last weeks hefty devaluation of the bolivar currency by the government of Chavez who has been

in hospital in Havana, Cuba since surgery in December will ease the country's budget shortfall, but will also likely spur inflationand further weaken the economy. Vice President Nicolas Maduro is running the country in the absence of Chavez. In the late 1990s,Venezuela was supplying almost 2 million barrels a day of crude oil to the United States. But that figure has shrunk in recent years tojust over a million barrels a day, on the back of increased US shale oil and gas production, and increased imports from friendlier US

neighbour Canada.Even so,Venezuela ranks as a top-four supplier, behind Canada and Saudi Arabia,and about level with Mexico. That makes the United States Venezuelas most important trading partner, despite Chavezconstantly railing at US imperialism.The big change for Venezuela is the increased interest being shownin the Orinoco belt by Russia, China and India.European and Asian oil companies such as Eni of Italy, Repsol of Spain,Petronas of Malaysia and Petrovietnam are active there, as is the US major Chevron, in partnership with Japanese companies.

PDVSA has a majority 60 per cent stake in all the various Orinoco blocks that have been licensed since 2009.Rosneft, for


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example, has committed to spend $US10 billion on its Venezuela projects over the next fewyears, including the highly prospective Junin-6 and Carabobo-2 blocks in the Orinoco belt. Rosneft heads a Russianconsortiumwith 40 per cent of Junin-6,where the technically recoverable reserves of oilare close to 11 billionbarrels.Late last month Rosneft said it would buy out one of its Russian partners, Surgutneftegas. It had earlier announced that itwould acquire another partner, TNK-BP, from current owners BP and the Russian AAR group in 2013, leaving Gazprom Neft andLUKoil as the remaining Junin-6 investors. Junin-6 is expected to produce 450,000 barrels a day at peak output.During his visit toCaracas, Sechin met Oil and Mineral Resources Minister Rafael Ramrez, with the two sides agreeing to strengthen cooperation and

investment in Venezuelas oil industry. They also said they would set up a joint drill-manufacturing operation.Like Russia,Chinaalso has been a heavy investor in Venezuela, with the China Development Bank committing to lend more than $40billion since 2008 against crude oil sales. China National Petroleum Corp (CNPC) is a 40-60 partner with PDVSA in the Junin-4block, where projected production is 400,000 barrels a day. Alongside PDVSAs 60 per cent stake, US oil major Chevron has 34 percent of the Carabobo-3 block also a 400,000 barrel a day project -- with Japanese partners holding 5 per cent and Suelopetrol (anindependent Venezuelan oil producer) 1 per cent.PDVSAs 40-60 partner in Junin-5, a 240,000 barrel a day project, is Italys Eni,while in the 400,000-bpd Carabobo-1 block the foreign partners with PDVA are Petronas (11 per cent), Repsol-YPF (11 per cent) andan Indian consortium led by ONGC Videsh with 18 per cent. ONGC Videsh, the overseas arm of state-owned Oil and Natural GasCorporation of India, also has a stake in another Orinoco belt project, the San Cristobal oil field at Junin.Indian private sector giantReliance Industries Ltd (RIL), led by Indias richest man Mukesh Ambani, is another investor in Venezuelan oil and gas projects,and is considered likely to commit a further $2 billion this year to more exploration and development of Orinoco oil belt prospects.Last October Reliance signed a 15-year heavy crude oil supply contract and a memorandum of understanding (MOU) with PDVSA tofurther develop Venezuelas heavy oil fields. Under the contract, PDVSA will supply between 300,000 and 400,000 barrels a day of

Venezuelan heavy crude to Reliances two refineries at Jamnagar in Gujarat state.Reliance said at the time the 15-year contract and MOU marked a further strengthening of the long-standing relationship

between Reliance and PDVSA.But the failing health of Chavez has left some investors wary of over-committing untilthe dynamics of any transition to a new Venezuelan leader are clear. Geoff Hiscock writes on international business and is theauthor of Earth Wars: The Battle for Global Resources, published by John Wiley & Sons.


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Mexico

Mexico has rejected US aid in the pastAP, 8(Associated Press, Mexico rejects conditions on U.S. aid for drug war, 3 June 2008,http://www.chron.com/news/nation-world/article/Mexico-rejects-conditions-on-U-S-aid-for-drug-war-1755218.php)//HO The Mexican government warnedMonday it would not accept conditions that the U.S. Congresshas imposed on an aid package to combat drug trafficking.The Merida Initiative would provide $1.4 billionover several years to help Mexico, Central America, the Dominican Republic and Haiti combat drug trafficking.But the U.S.House and Senate have imposed several conditions on the aid, including guarantees of civilianinvestigations into human rights abusesby the Mexican military.Interior Secretary Juan CamiloMourino said the conditions were "counterproductive and profoundly contrary to the object andspirit" of the initiative announced by U.S. and Mexican officialslast year."The initiatives approved

by both chambers of the U.S. Congress incorporate some aspects that, in their current versions, areunacceptable for our country," Mourino said.The House and Senate approved different amounts for the first installmentof the aid, and the two versions must be reconciled. Both bills fell well short of the $500 million sought by the Bush administration.Mexican President Felipe Calderon has earned strong support from Washington for his crackdown against drug cartels, carried outby more than 25,000 troops nationwide.Drug violence has surged as cartels fight back with increasingly brazen attacks againstsecurity forces. Last week, a senior police officer appealed for more powerful weapons after seven federal officers were killed in ashootout with members of the Sinaloa cartel.


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Venezuela

Venezuela says no to aff resents interference and doesnt trust USleadership

Fernandez, 3/22(Yusef, Venezuela Rejects U.S. Interference, Almanar News, 22March 2013,http://www.almanar.com.lb/english/adetails.php?fromval=1&cid=18&frid=18&eid=86989)//HOShortly after Chavez passed away, the Venezuelan government expelled the air force attach of theUS embassy in Caracas and his deputy, claiming that th

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