i think roy was right on this one...in any case it sounds like a deal is in the works....probably been worked out for months...

UPDATE: Venezuela, Russia Meet For High Level Business Talks

Editor: Sharon Li
7 Nov 2008 09:42:43 GMT

(Adds more details on agreements and background.)

CARACAS --Venezuelan and Russian officials met Thursday to examine a score of agreements, including a nuclear energy cooperation deal and possibly even commercial flights between Caracas and Moscow.

"We have the possibility of forming an alliance so Venezuela can have nuclear as an alternative source of energy in the future," Venezuelan Foreign Minister Nicolas Maduro said.

Russia's Deputy Prime Minister Igor Sechin visited Caracas for the talks that included accords in the finance, energy, tourism and mining sectors. The talks are expected to last through Saturday.

Venezuelan President Hugo Chavez has been enhancing relations with Russia in a bid to reduce the country's reliance on U.S. technology and know-how for a host of economic sectors, including oil. In the nuclear energy arena, both countries are expected to sign a memorandum of understanding to share nuclear energy knowledge and even plan out joint projects.

Venezuelan and Russian negotiators were also discussing opening direct flights between Caracas and Moscow operated by Venezuela's state airline, Conviasa, a sign of the increasing tight diplomatic relations between the two nations.

Conviasa, which doesn't fly to any U.S. destinations, has a flight to Tehran as President Hugo Chavez has developed a warm relationship with Iran.

Other items on the table include a bi-national development bank, and an aluminum plant with Russian technology on Venezuelan soil.

Chavez also intends to expand military relations with Russia, one of his closest allies, by purchasing billions of dollars of military equipment from Moscow. Both countries plan to conduct joint naval operations in the Caribbean later this month.

-By Darcy Crowe and Raul Gallegos, Dow Jones Newswires; (58) 212-905-6304; darcy.crowe@dowjones.com