Bolivia’s centrist government will honor all existing hydrocarbons and lithium contracts, including deals signed with Russian and Chinese firms, as it seeks to rebuild investor confidence after years of political and economic instability.
Energy Minister Mauricio Medinaceli said in an interview in La Paz on January 16 that respecting contracts was the government’s first signal to investors, even where it disagrees with how agreements were awarded under the previous leftist administration.
He said the pledge applies to lithium exploration firms, oil traders that supplied fuel last year, and partners involved in Bolivia’s energy supply chain.
Medinaceli said ideology would not guide policy, stressing that contract certainty was essential for economic recovery.
Bolivia holds vast lithium and natural gas reserves, but production has lagged after nearly two decades of state control discouraged foreign investment.
President Rodrigo Paz’s administration has also moved to repair relations with Washington and multilateral lenders after years of alignment with China, Russia, Iran and Venezuela.
Medinaceli said contracts with Chinese and Russian lithium firms would be reviewed through dialogue, but no agreements would be canceled outright.
The government is drafting new hydrocarbons and lithium laws to attract foreign capital, including more flexible taxes, royalties and contract models, while reducing the dominance of state energy firm YPFB.
If approved by Congress this year, Bolivia plans to launch new oil and gas exploration bidding rounds in 2027.
Fuel subsidy cuts introduced on December 18 sparked protests, but Medinaceli said the reforms were necessary to stabilize public finances and signal that Bolivia remains committed to honoring its contracts.