Opposition Warns Morales’s Tough Talk Will Alienate Brazil and Isolate Bolivia

Bolivian opposition leaders warned Evo Morales’ tough stance on foreign energy companies facing nationalization could drive investors away and Brazil’s state oil firm expressed outrage at the president’s accusation that it was operating illegally.

The criticism of the Bolivian leftist leader came after Morales, in Vienna for a summit of European and Latin American leaders, defended his May 1st nationalization of the Andean nation’s natural gas sector and said the foreign companies involved might not be compensated.

Morales also accused the subsidiary of Brazil’s state-run oil firm Petróleo Brasileiro SA, or Petrobras, of operating illegally in Bolivia. The charge angered the company that has invested more than US$ 1.5 billion in Bolivia and owns two refineries that process virtually all of the nation’s gas.

In a statement late Thursday, May 11, Petrobras said it was "indignant" at Morales’ claims and added it has "always acted within the law, in Bolivia as in all of the countries where it operates."

Morales announced 10 days ago that Bolivia’s government would set natural gas prices and transfer majority control of all energy operations to its state energy company, Yacimientos Petroliferos Fiscales Bolivianos. The president gave foreign energy firms six months to negotiate new contracts, or leave the country.

He raised eyebrows again Thursday when he said foreign companies might not be compensated for giving up control of operations and assets, a seeming hardening of his position just hours after Bolivian and Brazilian officials met in La Paz and agreed to form a commission to study how energy companies would be compensated.

"If they have recovered their investment, then there is no reason to compensate them whatsoever," Morales told a news conference.

In Bolivia’s capital, opposition leaders on Thursday warned Morales’ hard-line stance could isolate the impoverished nation internationally and criticized the president for being too influenced by Venezuela’s Hugo Chavez.

Pravda – www.pravda.ru

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil’s Lula Hints Palestine May Sign Trade Accord with Mercosur

Palestine might sign a trade agreement with the Mercosur. The possibility was mentioned by ...

UN Hears that in Brazil Government Is Main Promoter of Discrimination

The special rapporteur of the United Nations Organization (UNO) on Contemporary Forms of Racism, ...

TAM, Brazil’s Flag Carrier Airline, Joins Star Alliance

Brazilian flag carrier airline TAM announced its entry into the Star Alliance, the largest ...

Time for Brazil to Be More Than Just the World’s Farm

According to Celso Grisi, director at the Foundation Institute for Administration (FIA), Brazil has ...

Banco do Brasil Adopts Experian’s Experience to Check Clients’ Credit

Experian-Scorex has announced that Banco do Brasil is going to implement its Probe SM ...

Brazilian Astronaut Will Use Space Trip to Advance Brazil’s Space Program

Brazilian astronaut Marcos Pontes, speaking to reporters as he recovers from his eight-day sojourn ...

Brazil’s Surplus US$ 5 Billion Beyond IMF”s Wishes

The Brazilian government had a November primary account surplus of US$ 2.542 billion (6.857 ...

Brazilian senator Heloísa Helena running for president of Brazil

Heloísa: The Leftist Maverick Senator Vying to Be Brazil’s First Woman President

Heloísa Helena, a leftist senator from the impoverished northeast state of Alagoas, Brazil, has ...

Two Brazilian Indians Block Road to Procter & Gamble in Germany

Two Indians from Brazil and about 20 activists of the German NGO Robin Wood ...

Happy Days of Grapes and Wine at Brazil’s Sí£o Francisco Valley

The São Francisco River Valley, in the Northeast region of Brazil, is considered one ...