Chavez goads U.S. over terrorism blacklist and sanctions

By Saul Hudson

CARACAS (Reuters) - Venezuelan President Hugo Chavez dared the United States on Friday to impose sanctions on his OPEC nation as a terrorism sponsor after U.S. officials said they were investigating his support for Colombian rebels.

The probe could prompt the Bush administration to put the self-styled socialist revolutionary on the list and impose sanctions on the major oil supplier to the United States.

"They threatened to put us on the list of terrorists that they've got there. Great, let them make their list and shove it in their ... pocket," Chavez said with a pause for comic effect.

The United States, which clashes with Chavez over everything from oil prices to arms sales, has pledged to investigate Colombian allegations this month that a rebel's computer files show Chavez offered the FARC $300 million (150 million pounds).

The leftist, anti-U.S. Chavez expresses sympathy for Marxist FARC rebels and has called for the United States and the European Union to stop labeling the group as terrorists, causing friction with neighbouring Colombia, a U.S. ally.

This year, Chavez has negotiated the release of six high-profile hostages held by the FARC. He says accusations he sponsors Latin America's oldest insurgency are part of a U.S. plot to destabilize his OPEC nation.

Five countries are currently on the U.S. list: Cuba, Iran, North Korea, Sudan and Syria. Venezuela is an ally of Cuba and Iran and has improved ties with the three other countries since Chavez came to power in 1999.

It is not clear if blacklisting Venezuela would disrupt U.S. purchases of its crude.