Iran, Venezuela plan for ‘big projects’ in challenge to US
Iran and Venezuela, both petroleum-rich OPEC members, have found solidarity in coordinated geopolitical, economic, and military maneuvers against shared common enemy the United States, which has subjected them to a regimen of economic sanctions for years.
Ties between the nations were close under Venezuela’s late President Hugo Chavez, but strengthened further under Nicolas Maduro, who has sought a lifeline from Iran to pull his country’s economy back from the brink.
While Venezuela enjoys what are believed to be the world’s largest petroleum deposits, years of maintenance issues in the face of US sanctions have dramatically hampered its production and refining capabilities.
In June of this year, Venezuela and Iran signed a 20-year cooperation plan which involves Iranian assistance in repair and maintenance of existing Venezuelan refineries, as well as other technical and engineering expertise. The two nations also signed a deal whereby Iran will deliver four oil tankers to Venezuela through the Iranian company SADRA. Weekly flights between Caracas and Tehran commenced in July.
Currently, Venezuela lacks both the investment capital and the expertise to resurrect its once formidable oil industry. With Russia’s Rosneft sidelined by US sanctions, the Maduro government has looked to Iran to step into the gap.
Iran has sent fleets of fuel-laden tanker ships to alleviate Venezuela’s crises before, and also helped to export Venezuela’s crude in the face of crippling US sanctions.
On Sunday, Venezuelan Minister of Transport Ramón Velásquez announced the establishment of a “sea bridge” in order to expand bilateral trade between Tehran and Caracas.
Velásquez is currently leading a large delegation on an official visit to Iran to attend their joint economic commission meeting.
They met with the participation of seven joint committees consisting of the Venezuelan public sector and the private sector of Iran to debate issues related to agriculture and industry, science and technology, electricity, energy and oil.
ME
