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There have been a series of reports from a number of sources that Venezuela has finalized a deal with Russian arms manufacturers for $1+ billion, which reportedly includes SU-30MK2 (Mnogafunctunali Kommercial 2-seat) long-range multi-role fighters and various Russian helicopters.
Russian military deals are usually the opposite of transparent, and often there are conflicting reports with no official confirmation of announced reports or additional details released. Over at Defense Industry Daily, I've looked at various reports to explain the likely shape of the deal, the equipment involved, and what it means in the larger region. Chavez' military buying spree is starting to create shifts in some of his neighbours' attitudes, and Bolivia remains a potential flashpoint that may yet split up, with Venezuela, Chile, and Brazil lining up to support different sides.
Wait for Chavez to change his mind, forget, or find a more currently interesting (as well as lasting) use for the money. The guy's attention span makes gerbils look good.
The planes are nice, but do Venezuela's pilots have the chops to make good on the threat? IMO, a veteran American pilot in an 'obsolete' F-16 would still make mincemeat out 'em.
First, where they got the planes they can also get the necessary training (so long as they got money, and they do; although if the past performance of Russian-trained Arab pilots is any indication, that's not necessarily something to worry about).
Second, they're not taking on American pilots (not yet, at least), it's more about other Latin American countries.
They also bought a license to make AK47s locally; the Russians will set everything up for them.