Russia's Medvedev in Brazil, aims to double trade

By Oleg Shchedrov

RIO DE JANEIRO, Nov 25 (Reuters) - Russian President Dmitry Medvedev, on a tour to expand Russian alliances and business in Latin America, said on Tuesday he wanted to double trade with Brazil and expand cooperation in hi-tech areas.

Medvedev visited the Rio de Janeiro headquarters of Brazilian oil major Petrobras (PETR4.SA)(PBR.N) and was scheduled to dine with Brazilian President Luiz Inacio Lula da Silva later on Tuesday before an official state meeting with him again on Wednesday.

"I hope in the next few years the turnover will reach $10 billion a year (from $5 billion in 2007)," Medvedev said at a luncheon with Russian and Brazilian businessmen in Rio.

"The structure of the turnover is far from ideal," he said. "The main task is to make it include hi-tech sectors, major companies, and the energy sector. We have such potential."

He is scheduled to visit Venezuela, a buyer of Russian arms, and Cuba later this week as Russia seeks to reassert itself in a region that has grown more distant from the United States in recent years.

A fleet of Russian warships arrived in Venezuela on Tuesday to conduct joint naval exercises ahead of Medvedev's visit, another step in President Hugo Chavez's efforts to strengthen an alliance with Moscow and counter Washington.

Regional giant Brazil is more lukewarm toward Russian advances but sees a chance for closer cooperation with Russia in nuclear propulsion and aerospace technology.

COURTING BRAZIL

Brazil has embarked on an overhaul of its armed forces and plans to spend tens of billions of dollars over the next few years to refurbish outdated equipment, sparking the interest of numerous foreign defense contractors from Paris to Moscow.

Medvedev and Lula will sign accords to increase cooperation in the aerospace, nuclear and defense industries during the visit. Russia also hopes to sell helicopters, armored vehicles and other equipment to Brazil.

Medvedev told the luncheon that Brazil and Russia, two of the world's biggest emerging markets, already had a "strategic partnership" and were turning into leaders of global growth despite the financial crisis.

"There are other sectors where we can exchange opinions, create joint ventures. That is space, aviation, the military-industrial complex and the energy sector," he said.

French President Nicolas Sarkozy will likely steal a march on Russia next month when he signs a strategic defense alliance in Rio that offers Brazil not only arms but technology to build a domestic defense industry.

France has agreed to allow Brazil to build French helicopters and submarines under license, giving in to a Brazilian demand to share key military technology.

Russia's Sukhoi fighter jet failed to make the cut in a Brazilian air force tender to replace up to 100 aircraft over 15 years because it offered no technology transfer.