EU urged to act as Russia courts Latin America

The EU must tackle Russia over its growing military and energy links with Latin America, according to a document produced by the European Commission.

The paper, which has been distributed to EU member states, warns that Russia is increasingly supplying energy expertise and arms to the region to enhance its control over world energy markets.

It says Russia’s role is likely to increase in future and the EU needs to discuss these issues with Moscow.

According to the report, Russia’s co-operation with Venezuela in particular "has gained international political significance".

Both the EU and the US have expressed concerns about the role of Venezuela President Hugo Chávez and his attempts to create an anti-US bloc with Cuba and gas-rich Bolivia.

These suspicious have been further underlined by the return to power of Nicaraguan Sandanista leader Daniel Ortega and by Bolivia’s decision to nationalise its gas industry, to the detriment of Spanish firm Repsol.

According to the Commission, Russia views the region as a theatre in which to promote its vision of a multi-polar world and to enhance its control over world energy markets.

In July this year Russia sold Venezuela 24 Sukhoi jet fighters and 53 helicopters worth around €2.4 billion. In 2005 Russia signed a deal for the sale of 100,000 automatic rifles and the construction of a Kalashnikov factory.

"Russia seems to be seeking allies in the region in order to augment its influence in international organis-ations", including the World Trade Organization and the international oil-cartel OPEC, says the report, adding that: "[State controlled firms] Lukoil and Gazprom are increasingly active with licences in the Orinoco Basin."

Russia is currently involved in talks over a gas pipeline that would connect Venezuela with Argentina, Bolivia, Brazil and Uruguay, a project the report says could "dramatically upgrade Venezuela’s profile in the area".

Russia has reportedly been asked to design, construct and run the pipeline, something the Commission says the EU could become involved in because "Russia does not have the capabilities to undertake such a project on its own". But the report also notes that the "possible Russian economic invasion" has not come to pass. "So far the results are meagre," it says, and reflect Russian ambitions rather than concrete results.

"Moscow has been careful not to irritate Washington with full-scale support for anti-US positions," the report notes.

But Jean Daudelin, a Latin America analyst with the São Paulo-based Centro de Estudos das Negociações Internacionais, said Russia’s role in the region is still limited. "I’ve not seen serious [Russian] involvement in the region," he said, cautioning against over-stating the extent to which Bolivia could challenge western interests. "[President] Evo Morales is having very serious problems just staying in power," he said.

The report comes amid growing concerns in the Commission over China’s drive to buy up energy and raw materials in Africa. Earlier this month the Commission proposed establishing a dialogue with China on its role on the continent.

Peter DeShazo, director of the Americas programme at the Washington-based Centre for Strategic and International Studies, said Venezuela’s ties with Russia could give similar cause for concern. "Chávez is looking for support and business deals from countries that he sees as rivals or adversaries of the US. Clearly he sees things in Cold War terms," he said.

The EU must tackle Russia over its growing military and energy links with Latin America, according to a document produced by the European Commission.