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On state TV,
Venezuelan President Hugo Chavez
sealed an agreement to export 20,000 barrels per day of gasoline to Iran, reports the Associated Press. The deal would give
Tehran a cushion if the West carries out threats of fuel sanctions over Iran''s
nuclear program. The two countries signed the agreement during a visit by
Chavez, who pledged to deepen ties with Iran and stand together against what he
called the imperialist powers of the world. Western leaders have threatened to
impose further sanctions against it should Iran refuse to bend to deadlines for
talks aimed at curbing Tehran''s nuclear activities. One idea that has been
touted, though not yet formally proposed, is to cut off exports of gas
station-ready fuel to Iran. One of Iran''s weakest points is its dependence on
fuel imports. Despite its vast oil resources, it lacks the refinery capacity to
meet its own demand and must buy vast quantities of commercial-ready fuel on
the open market. The Venezuelan fuel could help Iran if such sanctions are
imposed. The fuel shipments will begin in October. Iran has managed to ride out
the limited sanctions so far without serious hardships, although lack of
significant foreign investment has left the economy stuck in low gear for
years. The U.S. and some of its allies accuse Iran of using its civilian
nuclear program as a cover to develop nuclear weapons.
Iran has denied the charges, saying its nuclear program is aimed at only at
generating electricity. Iranian leaders — particularly President
Mahmoud Ahmadinejad — have repeatedly insisted that Iran would never
uranium enrichment, which the U.N. has demanded it halt. The process can
produce fuel for a reactor or a warhead. Chavez said Venezuela would import
machinery and technology from Iran in return for its gasoline exports. The
broadcast also quoted Ahmadinejad as saying that the two countries agreed to
set up a bank together to help finance joint projects.
