United States says Venezuela undermines drug fight

* Report says Venezuela not helping to stem cocaine trade

* Says drug corruption has reached ministerial level

* Venezuela denies accusations, says active in drug fight

CARACAS, July 16 (Reuters) - Venezuela's lack of cooperation with U.S. drug officials is undermining efforts to stem cocaine trafficking, says a report from Washington that has drawn fire from the government of President Hugo Chavez.

Venezuela, which has thousands of miles of coastline and a rugged and porous border with the world's top cocaine producer Colombia, ended cooperation with the U.S. Drug Enforcement Administration in 2005 after accusing it of spying.

The report from the U.S. Government Accountability Office and seen by Reuters on Thursday says drug corruption has reached the ministerial level in Venezuela and decries a "permissive" attitude to trafficking groups from Colombia.

"At a minimum, the lack of Venezuelan counternarcotics cooperation with the United States is a significant impediment to the U.S. capacity to interdict drugs en route to the United States," said the report, which is expected to be released next week.

News of the report was met with anger by Chavez officials, who have had better relations with U.S. President Barack Obama than his predecessor George W. Bush and hoped Washington would reassess criticism of Venezuela's anti-drug strategy.

"Venezuela is engaged in an active fight against drug trafficking, said Chavez's ambassador to the United States Bernardo Alvarez. He said Interpol and the Organization of the American States praised the drug efforts of Venezuela, which has cooperation agreements with 37 countries.