The Bolivian Government has nationalised two Spanish-owned energy companies in the country, prompting the European Commission to warn it against sending negative signals to foreign firms.
Bolivia’s electricity sector was privatised in the 1990s but a week ago its President Evo Morales (pictured) signed a decree to take control of the distributors Electropaz and Elfeo, which are both owned by Iberdola, according to reports.
The Spanish government said in a statement it regretted Bolivia’s decision, while the European Commission’s spokesman John Clancy is reported as saying it hopes the country will be “fair and just” to Iberdrola.
Iberdrola is allegedly asking for €75million in exchange for the expropriation, reported Bolivian newspaper El Diario.
Last May President Morales ordered his military to seize the local assets of Spanish energy company Red Electrica.