Providing Asian investment advisory for non-sanctioned Eurasian Economic Union investors since 2011.
By Michael Barantschik
The relationship between Russia and Venezuela is a pivotal element in understanding contemporary geopolitical dynamics, particularly in the context of shifting global alliances and economic strategies. Historically, Venezuela, with its vast oil reserves, has been a significant player in the global energy market. This positions it as a strategic partner for Russia, a nation also rich in energy resources and seeking to expand its influence in Latin America.
Recent developments, including ongoing political turmoil in Venezuela and international sanctions, have further complicated this relationship. Russia’s support for the Venezuelan government, especially during times of heightened economic and political challenges, illustrates the depth of their strategic partnership. This alliance is not only based on mutual economic benefits but also on shared perspectives on global affairs, often in opposition to Western policies.
One of the most notable recent developments is the expected visit of Venezuelan President Nicolas Maduro to Russia. This visit is seen as a step towards strengthening cooperation, with Russian companies showing a keen interest in investing more in Venezuela. Additionally, the two countries are actively working on joint projects in various sectors including oil production, agriculture, medicine, and space exploration.
The history of Russia-Venezuela relations is marked by a significant evolution, particularly in the post-Cold War era. This period witnessed the transformation of Russia from a superpower at the helm of the Soviet Union to a nation redefining its place in the global order. Concurrently, Venezuela’s political landscape experienced shifts, with an increasing focus on socialism and anti-imperialist rhetoric, especially under the leadership of Hugo Chávez.
Under his leadership Venezuela’s relationship with Russia entered a new phase of cooperation. This strategic alliance was underscored by joint military exercises and high-level visits, including Chavez’s visits to Moscow and included numerous cooperation agreements covering a wide range of sectors, from the creation of a bi-national investment bank to direct air routes, construction of an aluminum plant, gas platform, automotive production, joint ventures in oil and gold production, space exploration, and nuclear energy.
In 2010, Chavez signed a deal to build Venezuela’s first nuclear power plant and bought US$1.6 billion worth of oil assets during his visit to Russia. By 2011, Venezuela had become the top customer for Russia’s arms for ground forces with Venezuela buying more than US$4 billion worth of military equipment from Russia.
The death of Hugo Chávez in 2013 introduced new dynamics into the Russia-Venezuela relationship. Despite international controversies surrounding Maduro’s election, Russia continued its support, which included Russia’s veto of a United Nations Security Council resolution calling for new presidential elections in Venezuela in 2019 and Maduro’s support for Russia as concerns the Ukraine conflict.
The geopolitical implications of this partnership are profound. Russia’s engagement with Venezuela is part of its broader strategy to establish a multipolar world order and challenge Western dominance. Both nations, through their alliance, advocate for a global landscape where power is more diffusely distributed, reflecting their shared goals, economic interests, and political ideologies.
Throughout these developments, Russia’s relationship with Venezuela has been driven by both countries’ status as major oil producers and their shared policy stance towards the United States. This complex historical trajectory has laid the foundation for the current trade and investment dynamics between Russia and Venezuela.

The trade relationship between Russia and Venezuela has seen significant developments in 2023, with both countries actively working to diversify and deepen their economic ties. This bilateral trade dynamic is particularly noteworthy in the context of the global geopolitical environment and the economic pressures faced by both nations. While there is no official record indicating the volume of trade, official Russian sources reported that trade volumes between Russia and Venezuela have jumped by 70% between January and July 2023. This growth is indicative of the strengthening economic ties between the two countries.
Furthermore, in a strategic move to bypass the dollar-dominated global financial system, Russia and Venezuela have confirmed plans to switch to national currencies in trade.
In the oil sector Venezuela, home to the world’s largest proven oil reserves, has partnered with Russia for both the development of oil production as well as refining. This partnership is crucial given the heavy nature of Venezuelan crude oil, which requires specialized processing. Joint ventures which have been established to enhance oil production and refining operations underline the energy sector’s significance in bilateral trade.
Agricultural trade is another pivotal area, with both countries reaching agreements on the supply of agricultural products. This includes the opening of the Russian market to Venezuelan fish exporters and plans for increasing the trade of beef, shrimp, seafood, soybeans, sorghum, coffee, and cacao. The supply of large quantities of Russian wheat and fertilizers to Venezuela reflects their deepening cooperation in this sector.
The pharmaceutical sector has also emerged as a key area of cooperation, with Russia supplying cancer drugs, flu vaccines, and collaborating on the modernization of insulin production in Venezuela. This collaboration extends to research and prevention of infectious diseases, signifying a broadening of trade beyond traditional commodities.
Russian IT companies are showing a growing interest in the Venezuelan market, offering solutions for telecommunications, information infrastructure protection, and urban digitalization. This diversification of trade into technology sectors represents an expansion of the traditional energy-focused bilateral relationship.
The contract signed between Moscow and Caracas for deploying a Glonass measurement station for space and satellite navigation in Venezuela further highlights the strategic nature of the bilateral relationship, extending into high-technology and defense-related sectors.
The agreement between the Russian-Venezuelan Evrofinance Mosnarbank and Venezuela’s National Superintendence of Cryptoassets and Related Activities (Sunacrip) on digital development is a significant step towards facilitating trade and economic cooperation without relying on US dollars or banking networks.
This broad diversification of trade into various sectors underscores the dynamic and multifaceted nature of their relationship.
Venezuela and Russia are preparing to launch a new shipping route, which signifies a deepening of trade ties between them. This development is a part of broader efforts to increase bilateral trade to US$300 million a month, excluding oil trade. The new route, running from Puerto Cabello in Venezuela to a to-be-determined port in Russia, symbolizes the growing logistical and trade alliance between the two countries.
Venezuela, traditionally reliant on the oil industry, is expected to boost its export of non-hydrocarbon goods, such as coffee, fruit, and meats, to diversify its economy. This diversification aligns with the broader strategy of reducing economic dependency on the United States.
In October this year Russia and Venezuela signed 16 cooperation agreements in various fields, including energy, oil, tourism, culture, and education, during the 17th meeting of the Russia-Venezuela High-Level Intergovernmental Commission held in Moscow. These agreements cover maritime transportation, media cooperation, culture, science, and plans for a visit by the Venezuelan President to Russia. Notable among these is a memorandum of understanding between PDVSA and Russian companies for maintenance and exploration projects, as well as agreements in tourism, education, and intellectual property.
The cultural and educational sector are also witnessing increased collaboration, with the Bolshoi Theatre signing a memorandum with the Venezuelan Teresa Carreño Theatre Foundation, and the Russian Federal Youth Agency Rosmolodiozh formalizing cooperation with the Venezuelan Sports Ministry.
Additionally, Venezuela is expanding its space technology ties with Russia, as seen in its participation in the International Lunar Research Station project, a joint initiative with China. This involvement in space technology and exploration signifies a broadening of the Russia-Venezuela alliance into new, advanced technological domains.
As we look towards the future of Russia-Venezuela bilateral relations, several key considerations and potential opportunities emerge:
The energy sector, specifically oil, will continue to be a focal point. With global energy demands shifting and new technologies emerging, there are opportunities for joint ventures in alternative energy sources, as well as in the traditional oil sector, especially in exploration and refining technologies.
Given the existing military ties, there is potential for further collaboration in defense technology, including research and development of new military equipment and joint production initiatives.
Agriculture presents an opportunity for growth, especially in light of Venezuela’s need to bolster its food security. Investments in agricultural technology and infrastructure can provide significant returns while aiding Venezuela’s economic recovery.
By leveraging BRICS and EAEU Russia and Venezuela can use their positions in these international alliances to explore new markets. Strengthening South-South cooperation, particularly with other Latin American and BRICS countries, can open up new avenues for trade and investment.
There is also scope for increased technological and industrial collaboration. This includes the transfer of Russian technology to Venezuela and the development of joint industrial projects. And Russia’s investment in Venezuela’s infrastructure, especially in transportation and telecommunications, can yield long-term economic benefits and facilitate other forms of trade and investment.
In summary, it is evident that the Russia-Venezuela partnership is an interplay of strategic economic interests and geopolitical considerations. Central to this partnership is the mutual focus on the energy sector, primarily oil, which is complemented by significant military and defense collaboration.
Their relationship, however, extends beyond these areas, encompassing agriculture, technology, and infrastructure, reflecting a multifaceted economic and political alliance and is not static but subject to the influences of global geopolitical shifts, including ongoing sanctions and the pursuit of a multipolar world order.
The future of Russia-Venezuela bilateral relations holds a range of opportunities. Strategic engagement in key sectors, diversification of economic ties, and leveraging international alliances is opening up new pathways for growth and cooperation.
During these uncertain times, we must stress that our firm does not approve of the Ukraine conflict. We do not entertain business with sanctioned Russian companies or individuals. However, we are well aware of the new emerging supply chains, can advise on strategic analysis and new logistics corridors, and may assist in non-sanctioned areas. We can help, for example, Russian companies develop operations throughout Asia, including banking advisory services, and trade compliance issues, and have done since 1992.
We also provide financial and sanctions compliance services to foreign companies wishing to access Russia. Additionally, we offer market research and advisory services to foreign exporters interested in accessing Russia as the economy looks to replace Western-sourced products. For assistance, please email or visit

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