Venezuela aiming to insolate its economy from western sanctions builds new ties with Iran and Russia

A year after the inking of the cooperation agreement between the CEO of Iran’s SAIPA Automotive Group Mohammad Ali Teimouri and Venezuelan Minister of Transportation Ramón Velásquez at the venue of SAIPA Company in Tehran in order to produce Iranian cars in this country as joint venture (JV), Russia signs a transport deal with Venezuela.

Russia and Venezuela intend to create a shipping company to strengthen ties between Latin America and Russia. As part of the initiative, Moscow and Caracas plan to establish two transportation hubs to increase cooperation and establish a logistics chain. An intergovernmental commission has already decided to create such a company, which will be financed from public and private sources. The company could be registered in Sevastopol, St. Petersburg or Novorossiysk, and joint construction of ships is also planned.

New trade routes will greatly facilitate Russian exports to Latin America, since the region is actively interested in grain, sunflower oil and agricultural machinery from Russia. In turn, Russia will be able to import seafood and fruit at bargain prices. Venezuela will play the role of an operational center.