MercoPress. South Atlantic News Agency

Ecuador supports Bolivia if contracts are respected

Ecuador supports Bolivian President Evo Morales' decision to nationalize the country's hydrocarbons resources, as long as Bolivia respects existing contracts with foreign corporations.

"If in the Bolivian case contracts are respected I would agree with President Morales' resolution. If it's not so, I would have to think about it", said Ecuador's Energy minister Ivan Rodriguez in Quito.

The Ecuadorian official refused to judge president Morales actions but insisted that he would only support a decision that respects contracts between each country and the multinational corporations.

Mr. Rodriguez instead referred to the recent review pf Ecuador's hydrocarbons bill which forces foreign corporations to pay the Ecuadorian treasury 50% of windfall profits from the soaring price of oil and gas in international markets.

"What is essential is that contracts are respected as we are doing with the hydrocarbons legislation review which demands the sharing of windfall profits not contemplated in the original contracts", highlighted Ecuador's Energy minister.

However the review approved by President Alfredo Palacio was rejected by international corporations and United States which reacted by suspending negotiations with Ecuador for a free trade agreement.