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Analysis: Bolivia cozying up to Iran

By CARMEN GENTILE, UPI ENERGY CORRESPONDENT

Bolivian leader Evo Morales traveled to Tehran to bolster energy and political ties with Iran, a move that is certain to raise eyebrows in Washington.

During his two-day visit in the Iranian capital, Bolivia's leftist, indigenous leader Morales and Iranian President Mahmoud Ahmadinejad discussed ways in which Iran could help Bolivia improve its petroleum operations at home, particularly in the natural gas sector.

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The details of a signed agreement between the leaders were not disclosed; however, Ahmadinejad, said Iran was "interested in expanding relations with Bolivia in all fields."

While Bolivia possesses South America's second-largest proven gas reserves, only behind Venezuela, it has struggled it recent years to meet production quotas for neighboring customers like Brazil and Argentina, the latter of which depends heavily on Bolivian gas.

The Iranian leader also praised Morales for his resistance to what he alluded was heavy-handed U.S. policy in Latin America.

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Morales has nationalized Bolivia's energy sector, a move that was criticized by many in Washington. Morales is among a growing group of leftist Latin American leaders who oppose U.S. policy in Latin America.

Iran has been quick to capitalize on that dissent in recent years. Last September Ahmadinejad during his first visit to Bolivia pledged $1 billion to develop the country's oil and gas deposits.

Since then Iranian officials have been busy broadening ties with Latin America's leftist leaders in Ecuador, Nicaragua, and in particular, Venezuela.

Venezuelan President Hugo Chavez and Ahmadinejad have made several state visits to the leaders' respective countries to talk about ways to form stronger energy ties.

In April 2007 they agreed to establish a joint Tehran-Caracas oil company, a concept considered far-fetched by some considering the rash of projects proposed by the two nations that have yet to come to fruition.

While the proposed deal appears to be a bolstering of Venezuelan and Iranian ties -- an alliance that over the last several years has raised concern in Washington -- the possibility of real outcome is slim, said Jorge Pinon, an energy fellow with the University of Miami's Center for Hemispheric Policy.

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"It is highly unlikely that this deal will materialize," Pinon told United Press International. "Most of these state-to-state agreements are discounted by the (petroleum) industry because they recognize they are only (part of) a political agenda and have no economic justification."

Feasibility assessments on the energy front aside, both nations have poor ties with Washington, though by varying degrees, a commonality that bother Chavez and Ahmadinejad seem to relish. Morales, who considers Chavez a mentor, appears keen to forge a similar bond with Tehran.

While the Bush administration considers Iran a state sponsor of terrorism and a member of the "axis of evil," relations between Washington and Caracas have deteriorated in recent years. Chavez has accused the White House of sponsoring opposition groups trying to topple him, an accusation the White House denies.

Meanwhile, in an effort to wean themselves and other nations off U.S. dollars and its aid, Venezuela and Iran announced at the beginning of 2007 they would create a multibillion-dollar fund to help finance projects in countries that traditionally rely mainly on U.S. funding.

That fund, however, has yet to materialize.

Whether Bolivia's newfound friendship with Iran amounts to anything other than more of the familiar rhetoric that comprises Venezuelan-Iranian ties remains to be seen.

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