The US has blocked the sale of 12 military transport planes to Venezuela by a Spanish firm, Spain has confirmed. The US had objected to the US$1.5 billion sale when it was signed in November 2005, saying it could destabilise South America. The US ambassador to Madrid informed Spain's government of the decision to block the deal on Thursday.
Both Madrid and Caracas have said the equipment - including eight patrol boats - would have been used to combat drug-trafficking on the Colombian border.
Earlier this week, Venezuela had accused Washington of blocking the purchase of training jets from Brazil.
Tensions between Washington and Caracas have grown in recent months, in part because of US criticism over Venezuela's purchases of military equipment.
Spain defies US on Venezuela deal
Spain has said it will go ahead with the sale of 12 military planes to Venezuela despite US objections.
However, the aircraft will be made with more expensive European parts because the US has blocked the use of its technology for Venezuela.
The US says Venezuela's Socialist President Hugo Chavez could use the planes to destabilise the region.
Both Madrid and Caracas have said the equipment - also including eight patrol boats - is for defensive purposes. Deputy Prime Minister Maria Teresa Fernandez de la Vega said Spain "did not share" the US reasons for blocking the deal. She said the deal would create 1,000 Spanish jobs over the next few years.
Drug-trafficking
Mr Chavez has condemned the US position as "horrific imperialism," Reuters news agency reports.
The US accuses Mr Chavez of harassing the opposition and spreading instability across South America.
Mr Chavez had said the patrol boats and military transport planes supplied by EADS-Casa will be used to combat drug-trafficking on the Colombian border.
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