Russia's Bolivian Interest: Geopolitical Ambitions In South America

Bolivia has long been one of Russia's political allies in South and Central America, with the two countries sharing a history of diplomatic relations. In recent years, Bolivia has strengthened its ties with Russia, particularly in the fields of armaments cooperation, trade, energy, and military cooperation. Bolivia's focus on relations with Russia is primarily economic, with the country boasting natural resources such as crude and gas that are tempting for Russian investors. Russia has also reaffirmed its willingness to cooperate with Bolivia's Interim President Jeanine Áñez, with investments worth over $1.5 billion in Bolivia's defense, gas, and nuclear energy sectors.

Russia's interest in Bolivia's natural resources, especially lithium

Russia has been solidifying its influence in Latin America, with Bolivia becoming an increasingly important partner. Bolivia has long been one of Russia's political allies in South and Central America, and the two countries have had diplomatic relations since 1945. Bolivia's focus in its relations with Russia is mainly economic, particularly in the natural gas and lithium sectors.

In 2008, Gazprom, the Russian state-controlled energy company, signed an agreement worth $4.5 billion to explore for gas in Bolivia. In 2016, Russian corporation Rosatom began building a nuclear plant in Bolivia, and in 2017, Rosatom signed a memorandum of cooperation with Bolivia for lithium mining. Bolivia is estimated to have 23 million tons of lithium reserves, the richest known deposits in the world.

In 2023, Bolivia signed a $450 million deal with the Russian state firm Uranium One Group, a subsidiary of Rosatom, giving Russia access to its lithium reserves. Under the agreement, Uranium One Group will invest in a pilot lithium production project in Bolivia in three phases, with the goal of producing up to 14,000 tons of lithium carbonate per year.

The nuclear energy centre being built by Russia in Bolivia

Russia and Bolivia have a history of economic relations, with a focus on the energy sector. In 2016, Russia and Bolivia signed an agreement to cooperate on the construction of a nuclear research centre in El Alto, Bolivia. The project is a joint venture between the Bolivian Nuclear Energy Agency (ABEN) and Rusatom Overseas, a subsidiary of the Russian nuclear energy giant Rosatom. The centre, known as the Centre for Research and Development in Nuclear Technology, is being built at an altitude of 4000 metres and will bring together advanced nuclear technologies for healthcare, agriculture, and other industries.

The first two stages of construction, the Cyclotron Radiopharmacy Preclinical Complex (CRPC) and the Multipurpose Irradiation Centre (MIC), have been completed. The CRPC is a plant that will produce radioisotopes and radiopharmaceuticals for the diagnosis of oncological, cardiac, and neurological diseases. The MIC will be used to improve the genetic modification of seeds and pest control, as well as to prolong the shelf life of food and preserve raw materials.

The third and fourth stages of construction are currently underway and include the research reactor complex and laboratory buildings. The reactor complex will allow Bolivia to conduct fundamental and applied scientific research and provide additional tools for the development of various economic sectors, including the lithium industry. The research reactor will also produce radioisotopes and serve as a training tool for future nuclear facilities personnel.

The nuclear energy centre is expected to be completed in 2025 and will make Bolivia one of the most important countries in Latin America in the use of nuclear technology. The project is valued at $300 million and is part of a series of bilateral agreements between Russia and Bolivia to deepen their strategic partnership and cooperation in the energy sector.

Bolivia's abstention from condemning Russia's invasion of Ukraine

In recent years, Bolivia has strengthened its relationship with Russia, particularly during the presidency of Evo Morales. Morales, the first Bolivian leader to visit Moscow, signed agreements with Russia in the fields of energy, military hardware, and trade. Bolivia's interest in Russian-made military equipment, particularly aviation, is notable, with the country seeking to modernise its armed forces and combat drug trafficking. Additionally, Russian companies like Gazprom and Rosatom have significant investments in Bolivia's natural gas and nuclear energy sectors, further solidifying economic ties.

Bolivia's decision to abstain from the UN vote aligns with its history of neutrality in international conflicts. La Paz asserted that the escalation of the Russia-Ukraine conflict was due to a "lack of dialogue and understanding" while avoiding direct criticism of Russia. This stance is consistent with Bolivia's previous neutral positions, such as on the Crimea issue in 2014 and the Syrian issue during its non-permanent seat on the UN Security Council in 2018.

Bolivia's abstention also reflects the country's desire to court Russian concessions for economic and security cooperation. With investments worth over $1.5 billion in Bolivia's defence, gas, and nuclear energy sectors, Russia has significant economic interests in the country. By abstaining from the UN vote, Bolivia maintains its relationship with Russia, which has provided financial support, military equipment, and rhetorical validation.

In conclusion, Bolivia's abstention from condemning Russia's invasion of Ukraine is a result of its political and economic ties with Russia, its tradition of neutrality in international conflicts, and its pursuit of Russian concessions for economic and security cooperation.

The use of national currencies in trade transactions between the two countries

Bolivia and Russia have agreed to start trading in their national currencies, the ruble and the boliviano, instead of using the US dollar. This agreement will make it easier for both countries to conduct business and will facilitate the work of Russian companies in the Bolivian market.

The shift towards the use of national currencies in trade transactions is the result of strengthening economic ties between the two countries. Bolivia has been seeking to strengthen its energy cooperation with Russia, particularly in mining projects. Bolivia has vast reserves of lithium, a mineral vital to electric batteries, and has been negotiating with Russian firms to become a supplier of electric batteries to the global market.

In addition to energy and mining, Russia and Bolivia have also been developing their military ties. Bolivia has expressed interest in purchasing Russian-made military hardware, particularly aviation equipment, to replace retired US-made jets. Russian-Bolivian technical military cooperation also focuses on training Bolivian officers.

The use of national currencies in trade transactions is significant as it reduces dependence on the US dollar and strengthens the economic relationship between the two countries. It also aligns with Russia's interest in expanding its influence in Latin America and challenging the dominance of the US dollar in international trade.

Russia's willingness to cooperate with Bolivia's interim president

Russia has expressed its willingness to cooperate with Bolivia's interim president, Jeanine Áñez, who took office following the resignation of former president Evo Morales in November 2019. While Russia had maintained good ties with Morales, it has shown a willingness to work with the new administration, signalling its interest in maintaining and expanding its influence in Latin America.

Russia's Deputy Foreign Minister, Sergei Ryabkov, stated that Russia was ready to work with Áñez, recognising her as Bolivia's new leader until elections were held. This stance is in line with Russia's broader strategy in the region, where it has sought to strengthen its presence and support authoritarian regimes such as Cuba, Nicaragua, and Venezuela.

The Kremlin's willingness to cooperate with Áñez can be understood in the context of protecting its economic and strategic interests in Bolivia. During Morales' presidency, Russia invested heavily in Bolivia's defence, gas, and nuclear energy sectors, with agreements totalling over $1.5 billion. These investments opened the door for Russian corporations such as Rosatom and Gazprom to establish a foothold in the country.

To safeguard these investments and maintain its influence, Russia has distanced itself from Morales and reaffirmed its commitment to working with the lawfully elected authorities in Bolivia. This was echoed by Russian President Vladimir Putin, who expressed his hope that the new Bolivian government would remain interested in expanding relations with Russia.

Russia's interest in Bolivia extends beyond economics and politics. The two countries have also collaborated in the fields of energy and military cooperation. In 2009, Russia and Bolivia signed agreements to strengthen energy ties and combat drug smuggling. Additionally, Bolivia has shown interest in purchasing military hardware from Russia, particularly aviation equipment to replace retired U.S.-made jets.

In summary, Russia's willingness to cooperate with Bolivia's interim president, Jeanine Áñez, reflects its broader strategic objectives in Latin America. By maintaining and expanding its influence in the region, Russia seeks to protect its economic and strategic interests, as well as support like-minded authoritarian regimes. The interim presidency of Áñez provided Russia with an opportunity to demonstrate its commitment to stability and the expansion of its influence in Bolivia.

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