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Lukashenka’s visit to Venezuela yields 22 agreements

As many as 22 agreements have been signed for cooperation between Belarus and Venezuela in the economic sphere as a result of Alyaksandr Lukashenka’s visit, said Venezuela’s state news agency ABN.

In particular, the accords provide for Belarus to design and build an “agro-town” in Venezuela, help create an agricultural production infrastructure, build a service center for machines and equipment, supply equipment for scrap metal processing, and build two plants for battery utilization, BelaPAN said.

Venezuela is expected to daily sell 80,000 barrels of crude oil to Belarus starting May 1, 2010. The oil would be refined in Belarus and the resulting products would be exported to Central Europe. Venezuela plans to enter the European energy market, President Hugo Chavez said, according to ABN.

An agreement was signed for Petrolera BeloVenezolana, a Belarusian-Venezuelan oil company, to begin natural gas production in Venezuela. Some 40 cubic feet (1.13 million cubic meters) of gas is to be produced at the initial stage. The output is expected to increase fivefold by 2012, with investment estimated at $1.6 billion.

According to Mr. Chavez, Venezuela’s confirmed reserves of natural gas are 200 trillion cubic feet (5.66 trillion cubic meters). Exploration on land and at sea should double this figure and earn Venezuela a fourth-place ranking in the world, behind Russia, Qatar and Iran, he said.

A Belarusian-Venezuelan company will be established within two months to deliver Venezuelan oil to Belarus, reported Belarusian Television (Channel One). In addition, according to the channel, a contract was signed for 1,300 units of Belarusian-made road construction equipment valued at almost $200 million to be supplied to Venezuela.

Belarus will also supply $20 million worth of BelAZ mining dump trucks in the first half of 2010 and build two plants in Venezuela before July 1, 2011, which would annually produce 5,000 Belarusian-designed trucks and 10,000 Belarusian-designed tractors, Belarusian Television said.