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Moscow, July 27: Venezuelan President Hugo Chavez hailed Russia for defying a U.S. arms blockade by agreeing to sell fighter aircraft to his country.

Chavez will sign a $1 billion deal to buy at least 24 Russian Sukhoi-30 jets to replace oil-rich Venezuela's U.S. F-16s. Russia has also said it is ready to sell a similar number of military helicopters to Venezuela.

''I would like to thank Russia, the producer of armaments, because Russia has helped to sever the blockade that was tied by the United States around Venezuela,'' Chavez yesterday said in the city of Izhevsk in remarks reported in Russian by Interfax news agency.

''American imperialism wants to hold the world in its fist, but it will not succeed in this,'' he said, according to Itar-Tass news agency, during an earlier stop in Volgograd.

Chavez, who says he is preparing his armed forces to fend off a U.S. invasion, is set to cement growing ties with President Vladimir Putin at a Kremlin meeting today.

Washington has banned U.S. arms manufacturers from selling to Chavez. The United States says the populist leader, who proclaims socialist ideals to unite South America against U.S. influence, is destabilising the region.

U.S. officials hoped to talk Russia out of the arms deals. But senior Kremlin officials say they see no reason to take advice from the United States.

'Not Helpful'

''We've repeatedly talked to the Russian government that the arms purchases planned by Venezuela exceeded its defensive needs and are not helpful in terms of regional stability,'' State Department spokesman Tom Casey told reporters, according to a transcript of comments.

''We have, as you know, expressed our concern to the Russian government about this and we've urged them to reconsider the sale.

So we'll just have to see.'' A former soldier, Chavez actively courts Washington's foes such as Cuba and Iran, a country he will also visit on his two-week world tour.

Chavez visited a firing range in Izhevsk and was shown on Russian television embracing Mikhail Kalashnikov, designer of the legendary AK-47 assault rifle, who lives there.

Chavez said agreements would be signed to build plants in Venezuela to produce Kalashnikov assault rifles and ammunition.

Venezuela recently bought 100,000 Kalashnikov rifles as well as Russian attack and transport helicopters.

''There is a revolution going on in Venezuela at the moment and to make it with old weapons is difficult -- we must be strong,'' Chavez said.

Chavez said Russia -- the world's biggest natural gas producer and second largest oil exporter -- was ready to help build a steel pipe factory for a 8,000-km Latin American gas pipeline. Venezuela is the world's No. 5 oil exporter.

Chavez arrived in Russia on Tuesday and, in the city of Volgograd, he paid homage to a statue of revolutionary leader Vladimir Lenin.

Reuters