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05-11-2006, 08:23 PM
Bolivian Says He Won't Pay Energy Companies (http://www.nytimes.com/2006/05/11/world/americas/11cnd-bolivia.html?ex=1305000000&en=312de88dd5bec533&ei=5088&partner=rssnyt&emc=rss)
The leader of Bolivia today ruled out any compensation for nationalized oil and gas resources as he faced tough questioning before a high-profile European summit meeting to discuss energy and trade.
President Evo Morales sent in the army on May 1 to occupy oil and gas fields owned by British Gas, Total of France, Repsol of Spain and Petrobras of Brazil. He said there was no need to pay, since the companies had already recovered their investments plus profits.
Europe is watching the case carefully.
The European Union wants closer economic ties with Latin America under normal rules of law. The Union's commissioner for external relations, Benita Ferrero-Waldner, said Europe was looking for discussions with Bolivia and the affected companies. "If there are already contracts, these have to be tackled and changed by dialogue," she said.
The foreign minister of Austria, Ursula Plassnik, said: "The rule of law and trust are key issues not just for the Bolivian people, but also for investors."
But Mr. Morales was firm. "There is no reason to indemnify them whatsoever," he said at a news conference at the start of the meeting of dozens of European, Latin American and Caribbean leaders. "If we were to expropriate their technology or their assets, in that case there could be talk of indemnifying them, but that is not the case."
Mr. Morales also confirmed expectations that his government planned to seize agricultural land and redistribute it to the peasantry, a prospect that has unnerved Brazil, whose Petrobras has already been hit by the gas field nationalization.
"We're not going to limit ourselves to oil resources," Mr. Morales said. "We're also going to finish with huge land owners, especially productive land, in our country."
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Its already the 11th and this is the first I’ve heard of this. Not surprised he chose May 1st to do this. Its interesting that Europe is taking well enough to invite him to Vienna to talk with the EU.
This article is patchy though. Not well written. Horrible title. The president of Bolivia should at least be called the president of Bolivia. This title makes him sound like some renegade indian, which I guess in a way he is, but not just any renegade indian.
The leader of Bolivia today ruled out any compensation for nationalized oil and gas resources as he faced tough questioning before a high-profile European summit meeting to discuss energy and trade.
President Evo Morales sent in the army on May 1 to occupy oil and gas fields owned by British Gas, Total of France, Repsol of Spain and Petrobras of Brazil. He said there was no need to pay, since the companies had already recovered their investments plus profits.
Europe is watching the case carefully.
The European Union wants closer economic ties with Latin America under normal rules of law. The Union's commissioner for external relations, Benita Ferrero-Waldner, said Europe was looking for discussions with Bolivia and the affected companies. "If there are already contracts, these have to be tackled and changed by dialogue," she said.
The foreign minister of Austria, Ursula Plassnik, said: "The rule of law and trust are key issues not just for the Bolivian people, but also for investors."
But Mr. Morales was firm. "There is no reason to indemnify them whatsoever," he said at a news conference at the start of the meeting of dozens of European, Latin American and Caribbean leaders. "If we were to expropriate their technology or their assets, in that case there could be talk of indemnifying them, but that is not the case."
Mr. Morales also confirmed expectations that his government planned to seize agricultural land and redistribute it to the peasantry, a prospect that has unnerved Brazil, whose Petrobras has already been hit by the gas field nationalization.
"We're not going to limit ourselves to oil resources," Mr. Morales said. "We're also going to finish with huge land owners, especially productive land, in our country."
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Its already the 11th and this is the first I’ve heard of this. Not surprised he chose May 1st to do this. Its interesting that Europe is taking well enough to invite him to Vienna to talk with the EU.
This article is patchy though. Not well written. Horrible title. The president of Bolivia should at least be called the president of Bolivia. This title makes him sound like some renegade indian, which I guess in a way he is, but not just any renegade indian.