Bruno Bocchini
Reporter - Agência Brasil

São Paulo – The president of the São Paulo Manufacturers Federation ( Federação das Indústrias do Estado de São Paulo) (Fiesp), Paulo Skaf, has called for a "firm reaction " by the Brazilian government in response to the decision by Bolivia to nationalize its gas and petroleum sectors. According to Skaf, the government must demand the preservation of Brazilian investor rights and respect for the contracts signed by the two countries.

"We are opposed to having Brazilian investors accept losses. We cannot allow a government, a president, a congress, that has been legitimately elected by the Bolivian people to just say that from now on things are going to be different. They have an obligation to take into consideration what happened in the past and respect contracts," declared Skaf, adding that the industrial sector in São Paulo was not inclined to accept price increases that result from new negotiations with Bolivia.

Brazil imports around 24 million cubic meters of natural gas from Bolivia daily. After travelling some 3,100 kilometers in the Bolivia-Brazil gas pipeline, 75% of the gas imported from Bolivia is consumed in the state of São Paulo.

Translation: Allen Bennett