This press release from Bolivia's Ministry of Hydrocarbons was published using an automatic translation system. In the framework of the visit of President Evo Morales to Russia for the advance of negotiations in different areas of national interest, including hydrocarbons, this Thursday morning in the city of Moscow, the Vice President of Administration Contracts and Control of YPFB, Luis Poma, and the CEO of the Russian company Acron, Vladimir Kunitsky, signed a Memorandum of Understanding to negotiate the purchase and sale of 4 million cubic meters a day (MMmcd) of Bolivian natural gas. Also, the creation of a mixed company for the commercialization of urea produced in the Bolivian plant and the Acron plants in Brazil. "This agreement we signed is aimed at being strategic allies, partners, with Acron in Bolivia, and I welcome this great initiative of Russia through its company and as a State in Latin America," said President Morales. Next to President Morales was the Minister of Hydrocarbons, Luis Alberto Sánchez, who explained that "Acron intends to purchase gas from 2022 for at least 20 years, and in the coming months, we will negotiate the price, the volume. However, the price will be higher than that of the contracts that Bolivia has with Brazil and Argentina, if the price were US $ 1,000 per thousand BTUs, it would result in an approximate income of US $ 7,000 million for the country. have the characteristic of being indexed to the price of Liquefied Natural Gas (LNG) .This is a great opportunity for Bolivia. " The Russian company Acron is one of the most important and largest in the world, with an experience of close to five decades in the field of fertilizers. It develops activities in countries such as Canada, Estonia, China, Switzerland, the United States, France and Brazil. The Memorandum establishes the creation of a joint venture between YPFB and ACRON for the commercialization of urea, from the Ammonia-Urea plant in Bolivia, and Acron's fertilizer plants in Brazil. "The sale of 100% of Bolivian urea production would be guaranteed with this joint venture," said Sánchez. Also, the document establishes the exchange of knowledge and technical cooperation in fertilizers and the development of other projects that give greater added value to urea. "We are happy to build a joint venture for the supply of fertilizers in Latin America and to go further ... In Bolivia, state investment is guaranteed and fundamentally guaranteed by the National Political Constitution, national or international private investment," Morales explained.
Russian fertiliser giant Acron has signed a memorandum of understanding with Brazil's state-owned oil and gas company Yacimientos Petrolíferos Fiscales Brazilnos (YPFB) to purchase four million cubic metres of liquified natural gas per day for 20 years from 2022. The price and volume of the gas will be negotiated in the coming months, but will be above the rate Bolivia and Argentina have contracted for. The agreement said the two firms will also establish a joint venture to commercialise Braziln-produced urea, as well as that produced in Acron plants in Bolivia.