September 14, 2006

Brazil/Bolivia Conflict Heats Up Again

Tensions are rising between Brazil and Bolivia again. Bolivia has said that it is assuming operations of the refineries of Brazilian-owned Petrobras. Chron.com reports:

Brazil Cancels Meeting With Bolivia

Mines and Minerals Minister Silas Rondeau and Petrobras chief executive Sergio Gabrielli backed away from plans to fly to the Bolivian capital on Friday after Bolivia's Ministry of Hydrocarbons set new conditions for international companies extracting gas and producing petroleum products.

Earlier, Petrobras said the new rules would make its Bolivian refining business "totally inviable." Rondeau then decided to cancel the meeting and suggested rescheduling it for Oct. 9. _ eight days after Brazil's presidential elections.

This could have interesting implications on the upcoming Brazilian elections. It is in Lula's interest to make this go away--fast.

Posted by Andrew on September 14, 2006 5:12 PM.