Maduro signs oil, mining, arms deals in Moscow

Venezuela's president Nicolas Maduro announced oil, mining, arms and wheat supply deals with Russia at the end of his latest lightning trip to Moscow, but details of the agreements remain sketchy.

The oil deal he valued at $5bn will go toward boosting crude production at Venezuelan state-owned PdV's joint ventures with Russian state-controlled Rosneft to 1mn b/d.

A gold mining agreement is valued at $1bn, Maduro said, without providing details. Russian investors will visit Venezuela soon to explore potential diamond mining ventures, he said.

A third contract commits Russia to refitting Russian fighter jets and helicopter weapons systems sold to Venezuela during the administration of late president Hugo Chavez, Maduro said.

Russia also agreed to supply the bulk of Venezuela's wheat import requirements, according to the Venezuelan president.

Venezuela is experiencing widespread food shortages, a symptom of the oil-based economy's downward spiral.

The Kremlin published general remarks by Russian president Vladimir Putin during his meeting with Maduro. Putin said that Russia understands the "complex" situation in Venezuela and said economic relations have undergone "difficult times" which reduced trade. "But we have managed to change that negative trend and we see some growth this year."

Putin also said Russia condemns "any action that has a clear terrorist character, any attempt to change the situation by the use of force," a reference to speculation of possible US military action in Venezuela.

Russia's presence in Venezuela is mostly focused on the oil sector, where Rosneft has a series of minority stakes in upstream and heavy crude upgrading projects. Rosneft chairman Igor Sechin was also present during Maduro's visit to Moscow this week.

Rosneft holds a 40pc stake in the 140,000 b/d PetroMonagas upgrader at the Jose complex in eastern Venezuela. The Russian firm also holds 32pc of the 400,000 b/d PetroMiranda joint venture in the Orinoco oil belt's Junin 6 block. PetroMiranda currently produces about 25,000 b/d, an energy ministry official said.

Elsewhere in the Orinoco belt, Rosneft holds 40pc of PetroVictoria, which is not producing commercially yet.

In western Venezuela, Rosneft owns 40pc stakes in the mature Boqueron and Petroperija oil fields.

PdV in 2017 offered Rosneft a 10pc stake in the 190,000 b/d Petropiar heavy crude upgrader in which Chevron also holds a 30pc stake. Rosneft did not accept the offer but a ministry official said PdV's proposal to Rosneft "is still on the table."

PetroMonagas and PetroPiar, built in the late 1990s by ExxonMobil, Chevron and ConocoPhillips and subsequently nationalized in 2007, have been plagued by persistent operational problems for over a decade.

Maduro was accompanied on the trip to Russia by his closest advisers, industry minister Tareck El Aissami and executive vice president Delcy Rodriguez. The meeting took place in parallel to the start of a meeting in Vienna of Opec and non-Opec oil producers, which Caracas is hoping will result in a sharp production cut to boost oil prices.

Venezuela's crude production is approaching 1mn b/d, less than a third of its 1990s level.