The presidents of Brazil and Bolivia held talks Saturday in Vienna and agreed to resolve their energy dispute caused by Bolivia's decision to nationalize its natural gas sector.

As neighbors, Bolivia and Brazil are "allied countries," Bolivian President Evo Morales told reporters after two-hour closed door talks with his Brazilian counterpart Luiz Inacio Lula da Silva.

He said they would negotiate a deal over the price of Bolivia's gas exports in a rational way.

Brazilian Foreign Minister Celso Amorim, speaking for Silva, told reporters that the two countries were to "turn the page of misunderstanding."

The two presidents met in Vienna after a European Union-Latin American summit.

The spat between the two countries over Bolivia's decision to nationalize its energy sector and its possible move to seize Bolivian land held by Brazilian farmers had been a key issue at the summit of the European Union, Latin American and the Caribbean countries.

Morales announced on May 1 his decision to nationalize its hydrocarbons industry in an effort to fight poverty in the South American country.

He noted that the price of natural gas exports to neighboring Argentina and Brazil should be raised.

As the largest importer of Bolivian gas, Brazil will be the most affected if Bolivia implements its decision.

Source: Xinhua