Bolivia to Seize Land, Rules Out Oil Compensation
Bolivian President Evo Morales said he will extend his nationalization of private property to include agricultural estates and ruled out any compensation for oil companies whose assets the government took over May 1.
Morales today also renewed accusations that foreign companies, including Brazil's state-controlled oil company Petroleo Brasileiro SA, evaded taxes and smuggled oil. He said the government doesn't owe anything to Petrobras or Madrid-based Repsol YPF SA, the biggest investors in Bolivia's oil industry.
``If they have recovered their investment and have also booked some earnings, there's no need to indemnify them whatsoever,'' Morales, 46, told reporters at a news conference in Vienna before a meeting of European Union and Latin American leaders. ``What we are looking for are partners, not bosses that exploit our oil resources.''
Bolivia's army took control May 1 of the country's oil and gas fields and gave foreign energy companies operating in the country 180 days to agree to new contracts with the government. The property seizures will extend beyond oil assets, Morales said today.
``Nationalization will not stop to oil resources, we'll extend it to land,'' he said.
Brazil's Foreign Minister Celso Amorim said today the government will defend Petrobras's interests in Bolivia.
`Legitimate Interests'
``The government of President Lula will not stop defending Brazil's legitimate interests,'' said Amorim, speaking at a news conference in Vienna. ``We are sure Petrobras acted legally.''
Foreign companies operating in Brazil have broken the country's laws, O Estado de S. Paulo reported today, citing Bolivian Foreign Minister David Choquehuanca. Petrobras, which is the biggest foreign oil company in Bolivia, may not be compensated, Estado said.
``Petrobras acts in a legal manner in all the country in which it operates and Bolivia is no exception,'' Brazilian Energy Minister Silas Rondeau told reporters in Brasilia.
Chavez
In threatening to seize farm land, Morales is mimicking a move by Venezuelan President Hugo Chavez, one of his closest allies. Chavez, arguing that owners underutilize the land or don't have proper deeds, has seized dozens of properties in recent years, including a food-processing plant owned by Lorenzo Mendoza, Venezuela's second-wealthiest man. Chavez, 51, is dividing up the land and turning it over to poor farmers, part of a plan the government calls ``On the Path to Socialism.''
`Strategic Ally'
Morales, who meets with Spanish Prime Minister Jose Luis Rodriguez Zapatero later today, called Spain a ``strategic ally,'' adding that Repsol's business activities may be probed. Repsol, which has invested $1 billion in Bolivia, today reported first-quarter profit increased 8 percent. The Spanish premier yesterday said he would be ``firm'' in defending his country's energy interests in Bolivia.
``The rule of law and trust are key issues not just for the Bolivian people but also for investors,'' Foreign Minister Ursula Plassnik of Austria, which currently holds the EU's rotating presidency, told reporters today in Vienna. ``It is up to the Bolivian government and president to explain'' the nationalization decisions.
Morales praised Cuban President Fidel Castro and said his country needed time to overcome the ``black history'' of 500 years of exploitation. Bolivia is the poorest country in South America, with an annual per capita income of under $1,000.
Gas Prices
Under a contract that extends to 2019, Petrobras pays Bolivia less than half the natural gas prices in North America. Morales, making good on campaign pledges to enable Bolivia's poorest citizens to share in the nation's energy wealth, vowed to set export prices himself. Bolivia is the second-biggest natural-gas producer in the region.
Brazilian Foreign Affairs Minister Celso Amorim this week blamed Chavez for Morales's decisions, telling lawmakers that the government is concerned about the Venezuelan leader's role in Bolivia's decision to seize Petrobras assets. Leonardo Coelho, his spokesman, said today the ministry has nothing new to add.
The Venezuelan government in a statement published on the Foreign Affairs Ministry's Web site, said Brazil's concerns about its intentions in Bolivia can only be attributed to a ``lack of understanding.'' Chavez didn't exert any pressure on Morales, the statement said.
Chavez is due to arrive in Vienna this afternoon after a visit with Pope Benedict XVI in Rome earlier today.
Morales today also renewed accusations that foreign companies, including Brazil's state-controlled oil company Petroleo Brasileiro SA, evaded taxes and smuggled oil. He said the government doesn't owe anything to Petrobras or Madrid-based Repsol YPF SA, the biggest investors in Bolivia's oil industry.
``If they have recovered their investment and have also booked some earnings, there's no need to indemnify them whatsoever,'' Morales, 46, told reporters at a news conference in Vienna before a meeting of European Union and Latin American leaders. ``What we are looking for are partners, not bosses that exploit our oil resources.''
Bolivia's army took control May 1 of the country's oil and gas fields and gave foreign energy companies operating in the country 180 days to agree to new contracts with the government. The property seizures will extend beyond oil assets, Morales said today.
``Nationalization will not stop to oil resources, we'll extend it to land,'' he said.
Brazil's Foreign Minister Celso Amorim said today the government will defend Petrobras's interests in Bolivia.
`Legitimate Interests'
``The government of President Lula will not stop defending Brazil's legitimate interests,'' said Amorim, speaking at a news conference in Vienna. ``We are sure Petrobras acted legally.''
Foreign companies operating in Brazil have broken the country's laws, O Estado de S. Paulo reported today, citing Bolivian Foreign Minister David Choquehuanca. Petrobras, which is the biggest foreign oil company in Bolivia, may not be compensated, Estado said.
``Petrobras acts in a legal manner in all the country in which it operates and Bolivia is no exception,'' Brazilian Energy Minister Silas Rondeau told reporters in Brasilia.
Chavez
In threatening to seize farm land, Morales is mimicking a move by Venezuelan President Hugo Chavez, one of his closest allies. Chavez, arguing that owners underutilize the land or don't have proper deeds, has seized dozens of properties in recent years, including a food-processing plant owned by Lorenzo Mendoza, Venezuela's second-wealthiest man. Chavez, 51, is dividing up the land and turning it over to poor farmers, part of a plan the government calls ``On the Path to Socialism.''
`Strategic Ally'
Morales, who meets with Spanish Prime Minister Jose Luis Rodriguez Zapatero later today, called Spain a ``strategic ally,'' adding that Repsol's business activities may be probed. Repsol, which has invested $1 billion in Bolivia, today reported first-quarter profit increased 8 percent. The Spanish premier yesterday said he would be ``firm'' in defending his country's energy interests in Bolivia.
``The rule of law and trust are key issues not just for the Bolivian people but also for investors,'' Foreign Minister Ursula Plassnik of Austria, which currently holds the EU's rotating presidency, told reporters today in Vienna. ``It is up to the Bolivian government and president to explain'' the nationalization decisions.
Morales praised Cuban President Fidel Castro and said his country needed time to overcome the ``black history'' of 500 years of exploitation. Bolivia is the poorest country in South America, with an annual per capita income of under $1,000.
Gas Prices
Under a contract that extends to 2019, Petrobras pays Bolivia less than half the natural gas prices in North America. Morales, making good on campaign pledges to enable Bolivia's poorest citizens to share in the nation's energy wealth, vowed to set export prices himself. Bolivia is the second-biggest natural-gas producer in the region.
Brazilian Foreign Affairs Minister Celso Amorim this week blamed Chavez for Morales's decisions, telling lawmakers that the government is concerned about the Venezuelan leader's role in Bolivia's decision to seize Petrobras assets. Leonardo Coelho, his spokesman, said today the ministry has nothing new to add.
The Venezuelan government in a statement published on the Foreign Affairs Ministry's Web site, said Brazil's concerns about its intentions in Bolivia can only be attributed to a ``lack of understanding.'' Chavez didn't exert any pressure on Morales, the statement said.
Chavez is due to arrive in Vienna this afternoon after a visit with Pope Benedict XVI in Rome earlier today.
posted by Alice at
Thursday, May 11, 2006
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home