Russia grants Venezuela $4 billion for military spending while China is lending Venezuela an additional $4 billion:
'Venezuela is finalizing agreements for two separate credit lines of $4 billion each with Russia and China, with a portion of the financing earmarked for military equipment for the South American nation, according to Venezuelan state media.With the world's largest oil reserves, Venezuela needs a well equipped military to defend itself from foreign aggression, President Hugo Chavez said during a broadcast phone call reported by the Venezuelan News Agency.
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Chavez had to call in the news from Havana, where he is undergoing chemotherapy.
Readers of this blog may recall that Russia has financed over $6 billion worth of military equipment from 2005-2010.
On the other hand, Venezuela is borrowing at least $24 billion from China:
'last year, Venezuela received a $20 billion credit line from the China Development Bank for housing'
The housing construction has not started, but Hugo's betting on oil futures, so to speak, in a very big way.