Bolivia, Brazil to discuss nationalization of Bolivia's natural gas industry

Bolivia and Brazil agreed to create commissions to discuss the implementation of Bolivia's decision to nationalize its natural gas industry, as the neighbors sought to diffuse tensions caused by the takeover by the Andean nation's leftist government.

Photo: Bolivia, Brazil to discuss nationalization of Bolivia's natural gas industry

Energy officials from the South American neighbors met Wednesday evening in the Bolivian capital of La Paz to discuss Bolivia's controversial decision last week to set gas prices and transfer majority control of all energy operations to its state energy company, Yacimientos Petroliferos Fiscales Bolivianos, or YPFB.

In a statement after a five-hour meeting, officials from both countries said that the Brazilian government "reiterates its absolute respect for the sovereign decisions taken by the government and people of Bolivia" in the nationalization decree.

They also agreed to create a high-level commission and three sub-commissions to determine the operating conditions for the Brazil's state-run petroleum company, Petrobras, in Bolivia with 180 days, reports the AP.

I.L.