Transcript of the beginning of the meeting:

Vladimir Putin: Mr President, Hugo. We are all very glad to see you here, welcome to Moscow. You have a packed agenda which is expanding by the hour. Today you had very intense talks with President Dmitry Medvedev. I welcome this opportunity to discuss our previous agreements within the framework of our joint action plan and those agreements reached during your visit today.

The volume of our bilateral trade, as we mentioned, requires constant attention. It is, in fact, the focus of our major agreements and projects. We are very pleased to have such a reliable partner in Latin America, with whom we can build relationships on projects that are important not just in bilateral terms. Their impact will, of course, be felt on the international energy market.

I am very pleased that we have reached the level of asset exchange. I am referring of course to Russian companies investing in businesses that in this case are located in third countries, in the European Union and in the Federal Republic of Germany.

I think it's absolutely the right decision, bearing in mind the logistics: the Russian companies are in a position to deliver raw materials via existing pipeline systems and, if necessary, by sea.

These are agreements that directly correspond to the interests and the economy of Venezuela, and Russia's economy.

Mr President I would like to draw your attention to the fact that we are fully ready to execute our agreements in the sphere of military and technical cooperation. And all our companies have launched production of special equipment and weapons in accordance with the orders you placed. All our companies have received the necessary funds to start work. Advances have been paid on this work. And work on the ground is underway. We intend to deliver the next batch of weapons in the near future. That will be the 35 tanks.

Work is underway in other areas and on other weapons systems, as I mentioned.

I am also pleased to note that, as we agreed during my visit to Caracas, Russian construction companies are preparing to help Venezuela solve its housing problems.

We understand how concerned you are about this issue. We understand your desire to help those Venezuelans in need move into decent housing. And, as I mentioned, we are ready to take the necessary steps in organising our construction companies, our specialists and engineers. I think that we can talk about all that this evening.

Hugo Chavez: (as translated) Thank you, Vladimir. Thank you for welcoming us. The plans we made in Caracas will all be realised. And then there are those important steps we have already taken - they just came to mind while I was talking with the President. We started virtually from scratch. Diplomatic relations, of course, existed, but I never tire of saying that all this is happening thanks to your will and the steps being taken by the government. Today, I recalled the flight of two Sukhoi aircraft in the skies over Venezuela - they had flown over there from here.

We first spoke on July 5 at the UN, and my first visit here was back in 2001. We have been working together for almost 10 years. And of course, there is a lot more that remains to be done. I think that we have made good use of these past years. And we are discovering new opportunities, new fields. Of course, the President's visit a year ago and your visit in April have given us a great boost. Both Igor (Igor Sechin), who works tirelessly, and my guys, too...

As for the issue of military cooperation, remember how we started... We were criticised and constantly attacked over that cooperation, but cooperation between us is progressing very well. I recently visited our Air Force squadron that flies all over the country in Sukhoi planes. We named that squadron the "Simon Bolivar." Of course, I am absolutely sure that the Sukhoi is the best fighter plane. I can already see that our guys are becoming experienced pilots and how a new generation is forming. My ambassador, General Garcia told me that he visited a tank factory here. He was an officer in the tank troops, as it happens. He drove a tank, our officers visited, we even sent some of our women over, women from the tank forces. I don't think women serve in the tank regiments in Russia, do they?

Vladimir Putin: Our women are great!

Hugo Chavez: Of course they are. The ambassador told me the tanks were outstanding!

Vladimir Putin: I meant our women...

Hugo Chavez: Them too!

Vladimir Putin: What's there to say about tanks? They're tanks! Women however...

Hugo Chavez: The guys who came here quickly got the hang of it and left fully trained. They're still coming here. We will ramp up this cooperation. And as for the Kalashnikovs ... Now we really do have armed forces. Construction is underway on a small-arms and munitions plant. Thank you very much for everything!

And now: housing. This was your idea by the way! Back in Caracas you said "I'll send a team over," and they were there in a matter of weeks. Just a week ago, we toured the site where we will start construction on 10,000 apartments. And the Russian team said we need to build a construction materials factory.

As for the oil sector, there is nothing to say, all the agreements are being executed. And the Russian-Venezuelan bank was also your idea, because President Medvedev has continued everything that you started. With just the same firmness. And today we signed a very important document - it is very important for us that we continue to build a new economic model, one that boosts agricultural production: shipping bananas, coffee, cocoa and flowers here, just as we discussed many years ago.

And then there is the issue of developing nuclear energy for peaceful purposes.

Thank you, Vladimir. I know that had a lot of work on all day today. But we must meet and talk.

Today, we laid the first stone of the monument to Simon Bolivar. And I will come and unveil it in spring. But we would still like to erect a monument to Miranda in St. Petersburg.

Things are going very well and we must now accelerate this process.

Vladimir Putin: How did you like our Lada car? You took it for a spin today, I believe?

Hugo Chavez: I used to drive one 20 years ago. Today, it went very fast. Security, of course, did not want me to actually drive the car. So I told them, "I'm not getting out of this car. I want to try driving it myself."

And we signed the agreement. It's a magnificent car. I know, of course, these days they are more modern. I believe it was the manager of the plant who went for a drive with me.

I asked him, "How much does this car cost?" and he answered "$7,000" saying that for $7,000 they could get it from here to there. Well, let me just say that buying a similar car from other multinational corporations would cost $20,000 or $30,000! What despicable speculation! Capitalists!

Vladimir Putin: The man who took you for a drive today in the car, is obviously not involved on the sales side. He's an engineer who doesn't understand how trade works.

Hugo Chavez: But he had data, printouts about prices, saying "this is how we will build the plant." And not only for Venezuela. The Caribbean, Central America, the Southern Common Market, Brazil... The horizons opening up before us are immense.

As for oil, today we agreed to start developing the new Carabobo-2 field in the Orinoco basin. Gazprom will start development work on this new field. It didn't win it first time round. The Spanish were lucky, as was the Spanish king, your friend, with Gazprom coming a close second.

Vladimir Putin: The Spanish king is a good friend to us and I also consider him my friend. I will be glad to work alongside the Spanish.

Hugo Chavez: I'll tell Raphael (Venezuelan Energy and Petroleum Minister Rafael Dario Ramirez) to discuss it with the Spanish.