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CARACAS, Venezuela, Dec 14 (Reuters) - Venezuela may buy military helicopters from Russia and is studying a possible joint space satellite program as part of increased cooperation and trade ties, Venezuelan President Hugo Chavez said on Friday.

Chavez made the announcement after signing accords on tourism, export credit mechanisms and government cooperation with visiting Russian Prime Minister Mikhail Kasyanov.

Since he took office in early 1999, the left-leaning president has courted Russia as part of his efforts to broaden Venezuela's foreign policy ties and loosen a traditional economic and political alliance with the United States.

Venezuela remains a major oil supplier to the U.S. market.

"The world needs a strong Russia (and) we need a multipolar
world," Chavez, accompanied by Kasyanov, said at a news conference following the signing of the agreements.

He announced the setting up of a high-level government cooperation commission and said experts from the two major world oil producers were studying a wide range of possible projects in energy, trade, aerospace and military affairs.

A bilateral military accord signed earlier this year had opened the way for increased exchanges of personnel, information and equipment, including the possibility of future arms purchases, the Venezuelan president said.

"We are closely evaluating the possibility of acquiring Russian helicopters," Chavez added, but he gave no details.

The president said his government had reduced defense spending. But he added it could look to Russia in the future to replace out-dated weapons systems in the armed forces, which are mostly equipped with U.S. and European arms and equipment.

The Venezuelan leader said one clear indication of the closer military ties between the two countries was the fact that Russian MiG-29 fighters flown by visiting Russian pilots took part in a ceremonial fly-past over Caracas on Monday.

This was the day business and labor opponents of Chavez staged a one-day national strike, shutting down much of the oil-rich country to protest against disputed economic reforms.

Kasyanov and Chavez said their countries were also studying the possibility of building a space satellite launch station in Venezuela. Russian experts had already visited a number of potential sites in the South American nation.

"It may be that, before 2021, we have one of these things here," the Venezuelan leader said, clutching a model of Russian space rocket on the table in front of them.

Chavez forecast that bilateral trade could be sharply increased from its current low level of around $100 million.

"We're going to go far beyond that," he said, adding that future Venezuelan exports of cocoa, coffee and aluminum to Russia would be assisted by bilateral export credits.

Both leaders said the two countries were also studying a wide range of potential energy cooperation projects, in crude oil exploration and production, gas, petrochemicals, fuels and hydro-electricity generation.

16:39 12-14-01

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