Argentina is likely to face heavy US pressure to block any sale of a nuclear reactor to the Venezuelan government of President Hugo Chávez, which is seeking to develop nuclear technology, possibly with the help of Iran.

Venezuelan officials have confirmed reports in Argentina that Venezuela's state-owned oil company Petróleos de Venezuela in August asked Argentina to sell it a “medium-sized” nuclear reactor. Washington maintains an uneasy relationship with Venezuela, which some US officials see as a “destabilising” influence in Latin America, and the prospect of a nuclear-empowered Mr Chávez would complicate matters.