Russia’s message to Obama

In a show of unity which is being interpreted as a challenge to the authority of the US, Venezuela and Russia have signed an agreement to promote the development of nuclear energy for civillian use.

Venezuela's maverick president, Hugo Chavez, welcomed Russia's head of state, Dmitri Medvedev to Venezuelan capital Caracas for the signing. The accord means Russia will help the South American state to build a nuclear power station, and joint gas projects are also planned.

Russian and Venezuelan warships will also hold joint exercises later this week - the first Russian deployment in the Caribbean since the end of the cold war.

Diplomatic observes said the meeting sent a clear message to US president-elect Barack Obama - if the US can operate in Europe, Russia can operate in an area traditionally seen as America's back yard.