Boris Johnson will return £7million to Venezuela after scrapping an oil deal made by Ken Livingstone.
The money was part of a £16million package in which the Caracas government exchanged cheap diesel for technical advice and assistance. Londoners on income support would have received half-price bus fares.
Mr Johnson said he does not want to do business with president Hugo Chavez. Mr Livingstone said: "Boris Johnson's ideologically-motivated move to cut off technical assistance to Venezuela will cost London a cool £7 million as well as doubling fares for some of the poorest people in the capital."
A spokesman for the Mayor said: "Venezuela, a very poor country, has given London, one of the world's richest cities, some £16 million of which several million has not been used. Boris Johnson feels that this was a morally bankrupt approach."
