COMPANIES AFFECTED BY BOLIVIA'S NATIONALISATION OF THE ENERGY SECTOR HAVE NO RIGHT TO COMPENSATION IF THEY HAVE RECOUPED THEIR INVESTMENTS, BOLIVIA'S NEW LEFT-WING PRESIDENT EVO MORALES SAID ON THURSDAY, ACCORDING TO REUTERS. MORALES ALSO REJECTED SUGGESTIONS HE SHOULD HAVE CONSULTED WITH INVESTORS OR NEIGHBOURING GOVERNMENTS BEFORE ANNOUNCING THE MOVE TO NATIONALISE BOLIVIA'S OIL AND GAS SECTORS ON MAY 1. "THERE IS NO REASON WHY I SHOULD HAVE TO ASK AND CONSULT ABOUT A COUNTRY'S SOVEREIGN POLICIES," HE TOLD REPORTERS BEFORE A SUMMIT OF LATIN AMERICAN AND EUROPEAN LEADERS IN VIENNA. MORALES, WHO SWEPT TO POWER ON PROMISES TO USE BOLIVIA'S NATURAL RESOURCES TO ALLEVIATE POVERTY IN THE ANDEAN COUNTRY, SAID FOREIGN OIL COMPANIES WERE ENTITLED TO RECOVER THEIR INVESTMENT AND TAKE RETURNS ON THEM BUT NOT HAVE OWNERSHIP. "THERE IS NO REASON WHY WE SHOULD THINK ABOUT COMPENSATION," MORALES SAID. "IF WE EXPROPRIATED ASSETS OR TECHNOLOGY WE WOULD HAVE TO PROVIDE COMPENSATION BUT IN THIS CASE WE ARE NOT EXPROPRIATING."
