Russia Builds Ties in Latin America to Challenge U.S.

By Henry Meyer

Sept. 18 (Bloomberg) -- Russia is in talks to build a space center in Cuba as it forges closer ties with Latin American countries opposed to the U.S. in the wake of Cold War-era tensions sparked by the Georgia conflict.

The head of the Russian Federal Space Agency, or Roscosmos, Anatoly Perminov, who visited Havana with Russian Deputy Prime Minister Igor Sechin earlier this week, made the announcement in a statement posted today on the agency's Web Site.

After Cuba, Sechin traveled to Venezuela, whose President Hugo Chavez heads to Moscow next week, and Nicaragua. Russia is playing its most active role in the region since the Soviet era, in a challenge to the U.S. in its traditional backyard.

``We're increasing our presence in Latin America -- the countries in the region themselves want this,'' said Russian Foreign Ministry spokesman Igor Lyakin-Frolov. ``There's a big power in the north. They need a counterweight,'' he said by telephone from Moscow today, referring to the U.S.

Russia has sold billions of dollars of weapons to oil-rich Venezuela in recent years. Since the August war with U.S.-backed Georgia provoked a rift with the West, Russia has stepped up efforts to bolster its influence in Latin America.

``The worse Russia's ties with the West become, the more it will look for allies elsewhere,'' said Viktor Kremenyuk, deputy director of the USA and Canada Institute in Moscow. ``Russia can play the role of a great power; it can sell oil, weapons and nuclear technology.''

Ties With Nicaragua

Nicaraguan President Daniel Ortega, whose revolutionary Sandinista government was supported by military aid from the Soviet Union in the 1980s, said yesterday after talks with Sechin that he planned to strengthen ties with Russia. Sechin said Russia will study plans to fund energy projects and boost trade. Nicaragua was the only country to follow Russia in recognizing the independence of Georgia's two breakaway regions.

Bolivia, South America's poorest country, will turn to Russia to replace U.S. funding for its anti-drugs program, the Bolivian government said yesterday.

Bolivia will send representatives to Russia to wrap up an agreement to provide it with helicopters, logistical support and military training to help the fight against drug trafficking, La Razon reported today, citing Felipe Caceres, Bolivia's vice minister of social defense.

Strained Ties

Relations between the U.S. and Bolivia have soured in the past week after President Evo Morales expelled the U.S. ambassador for allegedly helping foment violence in the opposition stronghold of eastern Bolivia.

Russia's Foreign Ministry yesterday criticized what it termed efforts to undercut Bolivia's territorial integrity and ``all forms of outside interference in the affairs of this sovereign Latin American nation.''

Morales, Ortega and Chavez are close allies who oppose the historic U.S. influence in Latin America. By courting Russia, ``Latin American states can demonstrate to the U.S. that if it doesn't treat them with respect, they have other countries they can turn to,'' Kremenyuk said.

Russian President Dmitry Medvedev will be in Peru in late November for the summit of the Asia-Pacific Economic Cooperation group and plans a weeklong regional trip, his office said today.

Sechin's visit to Cuba followed one he made in July to the Cold War-era ally. Russian newspaper reports of plans to station nuclear bombers on the Caribbean island prompted warnings from the U.S. not to cross ``a red line'' and were later denied by Russia.

U.S. Missile System

Russia opposes proposed U.S. missile defense bases in Poland and the Czech Republic, former Communist-era satellites. It's also resisting further eastward expansion of the North Atlantic Treaty Organization into the former Soviet republics of Georgia and Ukraine, accusing the U.S. of threatening its security by moving militarily up to Russia's borders.

Chavez last week welcomed two Russian TU 160 bombers, which flew from Venezuela to conduct training flights over neutral waters. Venezuela is planning a joint naval exercise in the Caribbean later this year with Russian warships, including the atomic-powered Peter the Great cruiser.

The Venezuelan leader will be in Moscow for the second time in two months next week. Three Russian oil companies signed exploration deals for Venezuela during Chavez's last visit to Russia in July.

Russia is currently in talks to sell air defense systems, armored personnel carriers and new-generation Su-35 fighter jets to Venezuela, the Kommersant newspaper reported, citing state industrial holding company Russian Technologies chief Sergei Chemezov.

To contact the reporter on this story: Henry Meyer in Moscow at Hmeyer4@bloomberg.net