Bolivian President Evo Morales arrived in Iran on Monday to discuss Iranian investment in his country, in the latest sign of strengthening ties between the Islamic Republic and leftist South American governments. Iranian President Mahmoud Ahmadinejad, seeking support to help fend off pressure in a nuclear row with the West, visited Bolivia last year.
Ahmadinejad pledged $1 billion in assistance to the South American nation on that trip. Iran, a sworn enemy of the United States, is embroiled in a dispute over its nuclear energy programme, which Washington - despite Tehran's denials - suspects is really aimed at building an atomic bomb. The UN Security Council has imposed sanctions on Iran because of the row.
Bolivia, which has strong ties with the government of Hugo Chavez of Venezuela, is one of several South American states to improve ties with Tehran, causing some concern in Washington.
Morales was met at the airport by Iranian Industries Minister Ali Akbar Mehrabian, before an official welcoming ceremony by Ahmadinejad. Bolivian Foreign Minister David Choquehuanca said his president would "seek Iranian investment in Bolivia's industrial and production sector," Iranian state TV reported. Bolivia's leftist government said in August it would set up a state cement firm with funding help from Iran and Venezuela.
Morales arrived from Libya, where a Bolivian source said he had been expected to seek investment in Bolivia's hydrocarbons indstry. Despite substantial reserves, Bolivia is struggling to meet commitments to pump natural gas to Argentina and Brazil.
Iran is the world's fourth largest oil producer and also sits on the world's second biggest reserves of gas. It has also been slow to develop gas exports, partly because of US sanctions that hinder access to some vital gas technologies.