The Venezuelan Government has signed off on a joint venture banana company agreement with Russian business Zao Bonanza International, website Prensa-latina.cu reported.

The decree appeared in the government's Official Gazette, stating the company would be funded with US$100 million in capital of which 51% will come from the Venezuelan Food Corporation (Cval) and Zao will provide 49%.

Igor Sechin and Hugo Chavez

The gazette referred to the new venture as the "Mixed Company for the Production, Processing, Exportation and Trade of Musaceae", with its base in Venezuela and planned offices or branches outside the country too.

The decree was signed by Venezuelan President Hugo Chavez, following a meeting last Thursday with Russian Deputy Prime Minister Igor Sechin, the story reported.

Chavez told the Russian delegation of plans to base the business over 2,000 hectares in an area south of Lake Maraicabo, while Sechin said area would be extended to 20,000 hectares, the story reported.

The business agreement comes as part of a Venezuelan plan to diversify away from dependence on oil revenues.

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