Russia seeks sales, not strife, in U.S. backyard

By Conor Sweeney - Analysis

MOSCOW (Reuters) - Russian naval missions and strategic bomber sorties to Venezuela are a showcase for arms exports, not an attempt to nurture Latin American allies for a new Cold War with Washington, diplomats and analysts say.

Finding new markets for its weapons has become even more important for Russia because the global markets crisis has sent the price of its other big export -- oil -- tumbling to about half the peak reached earlier this year.

Russia has been actively courting Washington's foes in Latin America in the past few months, with high-level delegations visiting Cuba and Venezuelan President Hugo Chavez coming to Russia twice this year.

Russian President Dmitry Medvedev will travel to Caracas next month, around the time that a flotilla of Russian naval vessels arrives in the Caribbean for the biggest such maneuvers in the area since the Cold War.

For a factbox on Russia's renewed interest in Latin America, click on.

Kremlin interest in the region intensified after Russia's war with Georgia in August soured relations with the United States.

Some see this as Kremlin muscle-flexing, a sign Russia is retaliating for perceived U.S. interference over Georgia by establishing a presence in the Caribbean that -- intentionally or not -- revives memories of the Cuban missile crisis.

But analysts and diplomats say Russia's motivation is more prosaic. "Relations are not politically driven, no question," said Nikolai Zlobin of the World Security Institute in Washington. "Whoever buys arms is Russia's friend."

"The naval and air visits are to showcase Russian arms to Venezuela and the rest of the world. Basically, it's a promotion," said Zlobin.

His views were echoed by a senior Western diplomat in Moscow with close ties to South America, who has discussed the arms issue with colleagues from across the region.

"Latin American countries may import and do big business with Russian military equipment suppliers, so Moscow sees it as an attractive market," he said.

BIG BUSINESS

At a government meeting this week, Medvedev said Russia's order book for arms exports to all customers was worth over $30 billion. "This is especially important when a major financial crisis is unfolding," Medvedev said.

Russia sees Latin America -- especially those countries like Venezuela which are pulling out of Washington's orbit -- as a growth market.

A Kremlin source said that 12 arms contracts worth $4.4 billion had been signed between Russia and Venezuela in the past two years and Moscow was providing $1 billion in credit for more purchases.