Русский
Russia and Venezuela are celebrating their 80th year of diplomatic relations this year, with Russian Foreign Minister Sergey Lavrov giving comments on contemporary relations on Friday (March 14). This is an edited overview of what he had to say, concentrating on the trade and investment issues:
Background
“Today, Russian-Venezuelan relations are developing on a firm basis of the Treaty of Friendship and Cooperation, which was signed in 1996, and a common foreign policy philosophy focused on establishing and protecting national sovereignty and a balance of interests in international relations. Our countries are committed to the creation of a more just polycentric world order based on the principles of the UN Charter in their entirety and as a whole, and the right of nations to independently determine their paths and models of political and socioeconomic development.
United Nations
Russia and Venezuela have developed a practice of mutual support at the UN, where our partner goes on record by making vocal statements in support of the key Russian initiatives when it has no right to vote because of the Western sanctions. Venezuela has traditionally co-authored our draft resolutions on combating the glorification of Nazism, on the no first placement of weapons in outer space, transparency and confidence-building measures in outer space activities, the prevention of an arms race in outer space, and on international ICT security.
OPEC & BRICS
We attach great importance to the further strengthening of our cooperation to stabilise the global energy market, including within OPEC+ and the Gas Exporting Countries Forum.
We value Venezuela’s interest in deepening cooperation with BRICS – a association advancing the interests of the Global South and East, and a pillar of the multipolar world order.
COLLABORATION
Political engagements rest on robust and multifaceted trade, economic, and investment cooperation. Despite Western sanctions, we have advanced mutually complementary collaboration. Moreover, unilateral restrictive measures against Russia and Venezuela have brought our nations closer, while our economies have developed resilient immunity to such pressures.
Practical coordination is channelled through the High-Level Russian-Venezuelan Intergovernmental Commission. At its 18th session (Caracas, November 7, 2024), a long-term plan for developing key cooperation areas until 2030 was signed.
BILATERAL TIES
Energy-sector investments in Venezuela underpin economic ties. Bilateral trade volumes grow via Russian exports of chemical, petrochemical, pharmaceutical, and agribusiness products. The Russia-Venezuela Council of Entrepreneurs operates effectively.
We systematically address logistical challenges within new geo-economic realities. Alternative financial mechanisms are being refined through interbank correspondent networks and central banks’ cooperation. The Russian-Venezuelan Evrofinance Mosnarbank functions successfully. Since 2024, Venezuela has accepted Russia’s Mir payment system cards via partner bank terminals. Independent transport and technological infrastructure leveraging domestic solutions is under development.
Military and military-technical cooperation, strengthened by joint exercises, visits of Russian vessels to Venezuelan ports, and initiatives to maintain the combat readiness of the Venezuelan Armed Forces, forms a cornerstone of bilateral relations.
Direct Caracas-Moscow-Caracas flights, operational since May 2021 via Venezuela’s state airline Conviasa, further deepen our ties. This route significantly contributes to tourism growth and strengthens friendship and trust between our peoples.
People-to-people ties have been a major element in our relations. Russia has been seeking to expand them by allocating state-sponsored scholarships so that Venezuelan nationals can enrol in Russian higher education institutions. The Centre for Open Education in the Russian Language and Teaching Russian at the Bolivarian University’s Francisco de Miranda Professional Training Institute operates successfully in Caracas, promoting mutual understanding. Universities have been forging closer ties too and there have been more delegation exchanges among civil society, research, educational and youth associations, coupled with joint lectures and workshops. There is also the good tradition of regularly receiving members of the Venezuelan Foreign Ministry as interns at the Russian Foreign Ministry’s Diplomatic Academy.
Based on the experience we have accumulated in our relations and by being creative in building on this legacy, we reaffirm our commitment to further strengthening our friendship and promoting lasting, stable, predictable ties. We look to the future with optimism. We are certain that our bilateral relations will keep expanding into new domains, while our alliance on the foreign policy front will enable us to achieve our objectives.”
The full text of Lavrov’s speech can be found here
ADDITIONAL COMMENTS
Venezuela holds the largest proven oil reserves in the world, primarily in the Orinoco Belt, and its economy is heavily reliant on the oil industry. Despite facing challenges such as underinvestment and mismanagement, oil production has started to increase, with exports reaching nearly 1 million barrels per day from November 2024, primarily directed towards Asian markets.
Apart from oil, Venezuela’s industrial sector includes manufacturing activities like food processing, textiles, construction materials, and iron and steel production. The government has been working on revitalizing these industries to decrease its dependency on oil exports and encourage economic diversification. Agriculture also plays a role in the economy, contributing to both exports and domestic consumption. However, the sector faces significant challenges, including land degradation and limited access to modern technology. The services sector, covering areas like finance, tourism, and retail, is another vital contributor to Venezuela’s GDP. The country has also developed a strong presence in industries such as textiles, aeronautics, pharmaceuticals, automobiles, steel, and chemicals.
Venezuela is a member of several regional and international organizations, though its participation has been limited due to political and economic challenges. It is a founding member of the Bolivarian Alliance for the Americas (ALBA) and became a full member of Mercosur in 2012, though its membership was suspended in 2016, and it now holds observer status. Venezuela also maintains observer status in CARICOM and has bilateral trade agreements with several CARICOM members, especially in energy and trade. Additionally, Venezuela has established numerous bilateral trade agreements with Latin American, European, and Asian countries, focusing on oil and agricultural exports. One key agreement is Petrocaribe, which facilitates preferential oil sales to Caribbean and Central American nations.
With a population of approximately 28.4 million people, Venezuela’s GDP (PPP) stands at US$224.5 billion, with a GDP per capita of US$8,486. Despite the economic and political challenges, the country’s economy is projected to grow by 3% in 2025.
Bilateral trade between Venezuela and Russia has been increasing, and reached about US$270 million in 2024, with a 70% increase over the previous year. The two countries also signed new agreements in November 2024, covering energy cooperation and petroleum exploration.
Russia has also diversified its range of exports to Venezuela by supplying high-tech goods (machine tools and equipment) and mineral products. The share of shipments of agricultural goods to the country also increased significantly. According to the results of the third quarter of 2024, Venezuela was the third importer of Russian wheat in the region.
A protocol on cooperation within the framework of the EAEU tariff preferences system was also signed. This will simplify customs procedures for the importation of Venezuelan goods to Russia that fall under the preferential regime of the EAEU (importation at 25% reduced customs duties) which will drive further growth of bilateral trade.
Further Reading
