Another problem with oil: Russia gives Venezuela cash

Filed under: Russia, Venezuela, Politics, Oil

U.S. consumers have another reason to worry about gas prices. Two of the largest oil-producing nations in the world are forming a military alliance, and neither nation likes the U.S.

According to The Wall Street Journal, "Venezuela's President Hugo Chávez signed new energy agreements with Russia on Friday, shortly after obtaining a $1 billion loan to buy more Russian arms."

Chavez has kicked a number of U.S. and EU oil companies out of his country as he has nationalized the industry. It would not be beyond imagination that Russia and the South American nation would use a combination of oil and guns to try to weaken U.S. influence in its own hemisphere and force America into more military spending to patrol the regions to its south.

Chavez has already begun spreading money around to his neighbors in the hope of being viewed favorably. Having a stronger military presence should help him make the case that he can keep the U.S. from using its power to push him out of his role as the most powerful political figure north of Brazil and south of Mexico.

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Another problem with oil: Russia gives Venezuela cash originally appeared on BloggingStocks on Sat, 27 Sep 2008 15:40:00 EST. Please see our terms for use of feeds.