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Bolivian, regional leaders to meet

BRASILLA, Brazil, May 3 (UPI) -- The presidents of Brazil, Bolivia, Argentina and Venezuela are set to hold talks after La Paz's surprise move to nationalize its natural gas reserves.

Brazilian President Luiz Inacio Lula da Silva called the meeting, which will take place in Foz do Iguac Thursday, hoping to find a diplomatic solution to Bolivia's decision to nationalize its energy sector, news agency Agencia Brasil reported.

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Bolivian President Evo Morales signed a decree Tuesday nationalizing the country's oil and gas reserves. Under the new legislation, the Bolivian government will retain 82 percent of the country's oil and gas revenues.

Brazil's Petrobas has invested roughly $1.5 billion in Bolivia's natural gas industry and an additional $2 billion on a pipeline from Bolivia that supplies half of Brazil's natural gas needs.

Spain warned Bolivia Tuesday that the nationalization of its natural gas reserves would have "consequences (for) the bilateral relationship," with a possible threat of ending Bolivia's debt relief, the Financial Times reported.

The political implications of Morales' decision remains unclear.

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