Spain cancels Venezuelan arms deal

MADRID, Oct. 19 (UPI) -- Madrid has canceled a $620 million military deal with Venezuela after Washington refused to license U.S. parts that were part of the contract.

"The financial effort needed to adapt to the technological requirements of the (United States) was not worth it," said Miguel Angel Moratinos, Spain's foreign minister.

EADS-Casa was planning on selling 12 transport aircraft to Caracas but the cancellation is likely to increase the South American nation's dependence on Russian and Chinese sources for military equipment, the Financial Times said Thursday.

So far this year U.S. officials have blocked Venezuela's efforts to buy training aircraft from Brazil, modernize F-16 fighters in Israel and buy anti-aircraft devices from Sweden's Bofors.