Saudi Arabia, Iran scramble over Latin America hegemony

November 16, 2023

CUBA: In a United Nations General Assembly vote, 187 member countries voted for the United States to remove the economic, commercial, and financial embargo that has been imposed on Cuba since 1960 and was made law since 1992. The resolution passed with two votes against and one abstention.

The embargo was originally imposed to pressure and weaken the Castro regime's bond with the Soviet Union. The sanctions limit purchase and sale of merchandise to and from Cuba, and discourages other countries from trading with Cuba. The embargo also prohibits U.S. companies from investing in Cuba, and places conditions on importing medicines.

Among the Latin American countries voting to end the blockade were Nicaragua, whose ambassador justified his vote by calling the embargo “criminal”; Brazil, Colombia, Venezuela, Bolivia, and also Spain among others, arguing that ending the embargo is the only way for Cuba to meet “Sustainable Development objectives,” claiming that the suffering of citizens is due to the embargo.

ARGENTINA: During the first presidential debate of 2023, presidential candidate and current Economy Minister Sergio Massa said if elected, he will prepare the country to adopt its own digital currency.

On November 10 and 11, a conference on Bitcoin and cryptocurrencies called LABITCONF 2023 was held in the city of Buenos Aires, featuring talks with crypto “experts”, economists, entrepreneurs, businessmen, developers, and communities from the main blockchain and cryptocurrency projects.

According to reports, Massa promised to grant tax benefits to those who “choose digital currency and toughen sanctions regimes, up to prison terms, for evaders.”

COLOMBIA President Gustavo Petro will request that the UN incorporate “Palestine” as a member, stating he will no longer buy weapons from states that do not support, or abstained from voting for, an Israel ceasefire.

Saudi Arabia's sovereign wealth fund, known as the Public Investment Fund (PIF), has been increasing its investments around the world, and Colombia has seen a significant increase in foreign direct investment over the years. For instance, Colombia's foreign direct investment increased by 5.3 USD billion in June 2023. In 2022, Colombia's foreign direct investment was $17.05 billion, a 81.72% increase from 2021. Colombia's Minister of Commerce has stated that the country welcomes Saudi investments.

Last month Petro announced he will open a Colombian embassy in “Palestine.” After the statements by the Colombian president, the Israeli ambassador announced that “exports of security equipment to Colombia will be suspended.”

BOLIVIA: Former Bolivian minister Carlos Sánchez Berzain discussed growing Iranian interference in Bolivia, referring to the severed diplomatic relations with Israel announced by President Luis Arce days ago, a decision that reportedly does not reflect the will of Bolivia’s people or institutions, but fulfills terms of Bolivian alignment with Cuba, Venezuela, and Nicaragua.

Iran and Bolivia have had diplomatic relations since 2007. Iran has an embassy in La Paz, and Bolivia has an embassy in Tehran. Both countries are members of the Non-Aligned Movement and Group of 77.

Iran's ambassador to Bolivia announced plans to open two low-cost public health clinics in Bolivia. Iranian business attaché Hojjatollah Soltani mentioned plans to use Bolivia as a base for future Red Crescent medical programs across the continent.

In 2010, Bolivian President Evo Morales visited Iran to seek further investments in Bolivia and to "expand ties, promote investments, and further enhance cooperation". This visit included discussions for a planned $287 million Iranian investment in Bolivia. This was preceded by a line of credit Iran extended to Bolivia for another $287 million as development aid, particularly for mineral exploration and the textile industry.

During another visit to Iran in 2010, Morales and the Iranian President Mahmoud Ahmadinejad expressed the need to "strengthen the resistance front formed by independent and freedom-seeking nations to fight against imperialism and global hegemony". Bolivia also denied having any joint uranium exploration deals with Iran in the face of international pressure on Iran's nuclear program.

On a visit to Iran in 2008, Bolivian President Morales secured Iranian assistance in promoting hydrocarbon development. An Iranian commission would help Bolivia study different options of promoting petro-chemistry and agribusiness production, as well as seek to quicken an investment of about $1.1 billion that Iranian President Ahmadnenijad promised on his visit to Bolivia in September 2007.

Iran's investments have aimed to boost bilateral economic and agricultural ties, from milk processing plants, to television and radio stations, including an agreement to provide Bolivian state television with Spanish-language programming. Reports also indicated an interest in Bolivia's reserves of uranium and lithium for use in Iranian nuclear projects.

Bolivia also grants identification to conceal Iranian citizens as if they were Bolivians, to hide Islamic operatives as ordinary citizens who freely travel around the world with Bolivian passports.

Previous Frontline News Latin America Weekly Summary editions: