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Evo Morales in Moscow to sign gas development deal

Monday, February 16th 2009 - 20:00 UTC
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Pte. Morales to Russia to sign gas agreement Pte. Morales to Russia to sign gas agreement

Evo Morales has become the first Bolivian President to visit Russia, after touching down in Moscow on Sunday. Morales is expected to sign crucial natural gas cooperation agreements and seek aid to combat drugs.

The visit is also viewed as another sign of Russia's increased interest in Latin America.

Morales told reporters on Friday that he would discuss the immediate purchase of helicopters and loans of other aircraft to fight coca production when he visits Russia.

"However, there will be a private meeting with the Russian president before signing any agreement," Morales said, Itar-Tass reported. "We need to decide for sure how and in what periods of time we can move forward." The Bolivian president is scheduled to meet with Russian President Dmitry Medvedev on Monday and on Tuesday he will be awarded an honorary doctorate. According to Bolivian sources the gas agreement involves 3 billion US dollars with Gazprom and includes development of Bolivia's natural gas industry, creation of a regional gas institute and updates to an earlier deal that also involves France's Total. From Russia Morales, the first elected indigenous president of Bolivia is scheduled to visit France. Bolivia holds second place, after Venezuela, for gas reserves in Latin America. Bolivia is also the third-largest producer of illegal coca, the main ingredient for cocaine, after Colombia and Peru. Coca leaves also have traditional and religious uses in Bolivia. Morales on Friday accused Washington of violating international conventions on the "shared responsibility" in the drug war. On Tuesday, Morales is to meet President Nicolas Sarkozy in Paris to "examine trade negotiations between the Andean Community (CAN) and the European Union," a government spokesman said in La Paz. Bolivia has not participated in free trade negotiations with the European Union, due to the lack of consensus with other Andean bloc countries -- Columbia, Peru and Ecuador -- currently in bilateral talks with Brussels. During his visit, Morales will therefore talk up opportunities in the exploitation of lithium, an abundant resource in Bolivia. He has indicated he wanted to "accelerate investments" in the soft metal that is used for electric car batteries. Several foreign companies, including France's Bollore, have indicated their interest in exploiting the huge Salar de Uyuni, a salt desert measuring some 12,000 square kilometres in south-eastern Bolivia that is home to a third of global lithium reserves.

Categories: Energy & Oil, Latin America.

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