Russia grants Venezuela $4 billion for military spending while China is lending Venezuela an additional $4 billion:
Venezuela is finalizing agreements for two separate credit lines of $4 billion each with Russia and China, with a portion of the financing earmarked for military equipment for the South American nation, according to Venezuelan state media.
With the world's largest oil reserves, Venezuela needs a well equipped military to defend itself from foreign aggression, President Hugo Chavez said during a broadcast phone call reported by the Venezuelan News Agency.
Chavez had to call in the news from Havana, where he is undergoing chemotherapy.
Readers of this blog may recall that Russia has financed over $6 billion worth of military equipment from 2005-2010.
On the other hand, Venezuela is borrowing at least $24 billion from China:
last year, Venezuela received a $20 billion credit line from the China Development Bank for housing
The housing construction has not started, but Hugo's betting on oil futures, so to speak, in a very big way.