Here is what happened yesterday in Bolivia. This is why it is a rotten place to do business. Take note of first sentence of third (last) paragraph. Risking shareholders money in Bolivia is naive:
Bolivia Seizes Gas Pipeline From Shell, Ashmore By Bill Faries
June 2 (Bloomberg) -- Bolivian President Evo Morales nationalized Bolivia's main gas pipeline company, expanding his control over the Andean country's natural resources one day after losing two regional referendums on his rule.
Morales issued a decree seizing the majority stake in Transredes Transporte de Hidrocarburos SA owned by Europe's Royal Dutch Shell Plc and Ashmore Energy International. Bolivia's state energy company held 47 percent. Morales said Transredes ``conspired'' against his government and rejected talks aimed at giving Bolivia control of the company.
Today's move is the latest by Morales to fulfill campaign pledges to ``re-found'' Bolivia by taking over energy and mining companies and directing more tax revenue from provinces to the treasury. The government forced oil companies to renegotiate contracts in 2006 and last year seized Glencore International AG's tin smelter. The actions have helped fuel discontent among business groups and provincial leaders.
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