MOSCOW - In a deal valued at more than $1 billion, Venezuela is expected to purchase five submarines from Russia, RIA Novosti reported Thursday.

Venezuelan President Hugo Chavez is expected to finalize the deal next week when he travels to Moscow.

The leftist leader has in recent years sought to improve Venezuela's defenses, claiming the United States is intent on invading the South American country to take over its oil supply -- allegations Washington has denied.

Venezuela is South America's largest oil supplier and major exporter of natural gas.

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