Russia Building Nuclear Plant in Venezuela

The Russian government said Friday it would build a nuclear power plant in Venezuela, the South America nation's first, following talks at the Kremlim between Presidents Dmitry Medvedev and Hugo Chavez.

Following the discussions, Russian and Venezuelan officials signed an agreement for "the construction and use of an atomic power station on the territory of Venezuela."

Chavez said the plant will help reduce his nation's reliance on fossil fuels. Venezuela is South America's largest oil producer.

Medvedev hinted the U.S. would likely oppose the deal.

"A deal in the atomic sphere has just been signed. I already know that it will make someone shudder. The president (of Venezuela) told me that there will states who will have different types of emotions about this," he said following the announcement.

"I would like to underline that our intentions are clean and open: we want our partner the Bolivarian Republic of Venezuela to have the full range of energy choices, to have energy independence," the Russian president added.

In addition to the nuclear deal, Russia agreed to buy a 50 percent stake in German refinery firm Ruhr Oel from Venezuelan state-owned company PDVSA. The deal was worth $1.6 billion.

A timetable for the construction of Venezuela's plant wasn't set in stone, officials said, noting it could take as long as a decade to even begin construction.

"It could be in 10 years, it could be earlier," Sergei Kirienko, head of the Russian state nuclear power corporation Rosatom, told the BBC.

Moscow has also assisted in the construction of Iran's nuclear power infrastructure, leading to increased tension with Israel and the U.S. Officials began loading the Bushehr reactor with fuel Aug. 21.

In May, Russia signed a deal with Bangledesh to help build that country's maiden nuclear plant.

"The framework agreement will lay the basis for detailed discussions leading to the signing of the final nuclear deal" on Russian assistance for the installation of the Ruppur Power Plant by 2017, a science and ICT ministry spokesman said.

(c) 2010 Newsroom America.