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Peru, Venezuela To End Rift, Renew Diplomatic Ties

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rcia said the countries would also discuss cooperation in the energy sector.

"I've spoken to Hugo Chavez. We'll restore diplomatic ties within a month's time sending our ambassadors, and will see what kind of energy cooperation we can gain," Garcia said.

Chavez told the same radio station: "The very fact that we are going to send ambassadors and are working on a (common) agenda shows that the moment is good, the moment is excellent in Latin America."

The two South American countries recalled their ambassadors last year amid Peruvian claims that Chavez was interfering in Peru's presidential race to favor leftist candidate Ollanta Humala.

In the run-up to Peru's presidential runoff, Garcia, a centrist, dubbed Chavez "shameless" and Chavez responded by calling him a "thief." Both demanded apologies.

Garcia also said earlier he would not allow Venezuela's state oil firm, PDVSA, to gain a foothold in Peru, as it had done in impoverished Bolivia by pledging to invest $1.5 billion of its largess in energy projects.

Chavez's efforts to build leftist alliances in Latin America on the back of anti-U.S. sentiment have irked more pro-U.S. neighbors Peru and Colombia, who have signed free-trade agreements with Washington and are awaiting their ratification.