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Bolivian fuel nationalised

  • 14/06/2006

Bolivian fuel nationalised Bolivian president Evo Morales's nationalisation of the country's natural gas has created a rift between Latin America's centre-left governments and the hard-left administrations of Bolivia, Venezuela and Cuba.

Brazil, which gets half of its natural gas from Bolivia, and Argentina, Bolivia's second largest gas buyer, are worried Bolivia's takeover might cause energy shortages and price hikes in their countries that could seriously damage their economies.

With Colombia and Peru clinching free trade deals with the us and Paraguay and Uruguay also considering similar alliances, Bolivia, and its left-wing allies are headed for a rift with centrist members of the Mercosur bloc.