Chavez threatens U.S. oil cut in Colombia dispute

CARACAS, (Reuters) – Venezue-lan President Hugo  Chavez threatened yesterday to cut oil supplies to the United  States in case of a military attack from Colombia as a dispute escalated over charges his country harbours Colombian rebels.

A vocal and frequent critic of the United States, Chavez  broke off diplomatic relations with Colombia last week over the  claims by the outgoing government of President Alvaro Uribe, a  close U.S. ally.

Chavez, a leftist who says Washington is behind the  charges, has never carried out previous threats to cut oil  supplies to the United States, Venezuela’s main customer.

“If there was any armed aggression against Venezuela from  Colombian territory or from anywhere else, promoted by the  Yankee empire, we would suspend oil shipments to the United  States, even if we have to eat stones here,” he said.

“We would not send a drop more to U.S. refineries,” he said  to a roar of approval from thousands of supporters at a rally  for his Socialist party.

Chavez, a former soldier and close ally of Cuba’s Fidel  Castro, is also angry with Bogota over a deal to allow U.S.  troops access to a series of military bases.

Venezuela, a member of OPEC, gets more than 90 percent of  its export income from oil sales, mostly to the United States,  and the South American country’s economy would collapse quickly  if it stopped shipments.

Speaking from Cuba, Venezuelan Oil Minister Rafael Ramirez  said the oil industry was on “yellow alert” and prepared to  follow Chavez’s orders.

“That’s the first step,” Ramirez said. “We are ready to  suspend the shipment of oil and products to the United States  if we suffer some type of military aggression.”

Oil workers assembled in the port of Puerto La Cruz were  told to prepare themselves and their families for a possible  “bellicose imperial” action, state oil company PDVSA said.
USEFUL BUT COSTLY

For Chavez, who has suffered a slide in his popularity this  year because of a deep recession, the dispute with Colombia is  a useful way of rallying supporters ahead of parliamentary  elections in September. The president, who was briefly ousted  in a coup in 2002, often alleges U.S.-backed plots against  him.

The rift has been costly for both nations. Billions of  dollars in trade were lost when Chavez ordered government  importers not to buy from the neighboring country.

Uribe will be succeeded as Colombia’s president on Aug. 7  by Juan Manuel Santos, who has been careful to avoid public  comment on the dispute.

Although Chavez says he hopes ties can return to normal  under Santos, tensions are likely to resurface over the issue  of FARC camps and a U.S. military presence in Colombia.

A group of South American foreign ministers will meet in  Ecuador next week in an attempt to resolve the crisis.

Santos was Colombia’s defense minister in 2008 and ordered  the bombing of a guerrilla camp in Ecuador, prompting Chavez to  order troops to the border with Colombia to deter any plans to  carry out a similar raid in Venezuela.

On Thursday, Colombia’s envoy to the Organization of  American States (OAS) revealed coordinates, photos and videos  of FARC camps allegedly in Venezuela — apparently choosing  diplomacy to avoid sparking a war in the region.

But Chavez said he feared an attack from Colombia was  imminent and canceled a trip to Havana for a celebration of  Cuba’s Communist revolution, saying the threat against  Venezuela meant it was not wise for him to travel.

The documents shown by Bogota’s envoy Luis Alfonso Hoyos to  the OAS permanent council included photos of guerrilla leaders  relaxing in jungle and mountain sites that he described as  summer camps. Chavez says the camps are not in Venezuela.

“We reject, have rejected and will always reject the  possibility that a foreign guerrilla force or paramilitary  force or foreign military installs itself in the tiniest square  millimeter of our sovereign territory,” Chavez said.

Venezuela shares a 1,375-mile (2,200-km) border with  Colombia, much of it in rugged terrain that is hard to police.  Many remote villages complain of the presence of paramilitary  fighters and guerrillas.