Venezuela Turns to Cuba

Venezuela and Cuba have formed a joint venture to update a Cuban oil refinery, tightening ties between the countries.

The two sides will pump an initial $800m to $1bn into the scheme which aims to completely reactivate the Cienfuegos refinery.

Under the agreement Venezuela's state oil firm PDVSA will hold a 49% share in the plant and Cuba the rest.

Venezuela has also agreed to supply 70,000 barrels per day of unrefined oil to the factory in south central Cuba.