Venezuela is to build Latin America?s first Kalashnikov factory under a deal with Russia that has stoked fears in Washington about the oil-rich country?s arms procurement plans.

The administration of Hugo Ch?vez took delivery at the weekend of 30,000 new Kalashnikov AK-103 assault rifles from Russia, the first batch of a $54m (?42m, ?29m) contract for 100,000 units of the weapon favoured by guerrillas worldwide.