Iran gives Venezuela $500 million credit line

Iran has agreed to a $500 million credit line for Venezuela to finance joint investments there, President Nicolas Maduro has announced.

He made the announcement after meeting Iranian Minister of Industry, Mine and Trade Mohammad Reza Nematzadeh in Caracas where the two sides signed six agreements to expand financial, economic, industrial and technological cooperation.

Among the agreements, there are plans for joint production of commodity goods, including detergents and other hygiene materials in Venezuela and Iran’s sales of medical drugs and surgical equipment to the country.

Maduro said the two countries had also agreed to a “comprehensive plan” to develop a joint program in nanotechnology in which Iran is among the top seven world countries.

He said the deals would ensure a higher level of cooperation and deepen the bonds between the two nations.

Moreover, Iran agreed to transfer its expertise to Venezuela in combating an “economic war” on the Latin American country, Maduro said, apparently referring to Iran’s experience in facing years of US-led sanctions.

“We are facing an economic war of monumental proportions; a brutal war (but) we are here attending to our people,” Maduro said as he invoked the vision of the late President Hugo Chavez for “the government’s union with the people and struggle against imperialism”.

The Venezuelan head of state also hailed relations with Iran as “an example of alliance between two brother nations”.

“Today we have mutual trust in our relations and we work together with results. Working with Iran has gone well and our cooperation has been a great success since Hugo Chavez began a strategic alliance and brotherhood with Iran,” Maduro said.

Relations between Iran and Venezuela — both critics of US policies — have expanded in recent years. Iran is involved in a series of joint ventures worth several billion dollars in energy, agriculture, housing, and infrastructure sectors in Venezuela.

Iran’s main industrial projects in Venezuela include a car assembly plant, a tractor manufacturing complex and a cement factory.

The Islamic Republic has also built more than 3,000 residential housing units for less privileged citizens in Venezuela, with 7,000 more to be completed.

Both countries are hugely rich in resources. Venezuela possesses the world’s biggest oil deposit while Iran owns the fourth largest oil and first largest gas reserves of the world.

Maduro has announced his intention to visit Tehran to attend a summit of Gas Exporting Countries Forum planned for Nov. 23.