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Brazilian Pres. Bolsonaro Says Discounted Russian Diesel Could Begin Arriving “In 60 Days”

Given that Brazil imports 30% of its diesel, both Petrobras and government officials have said that deal came as no surprise.

July 12, 2022
Brazilian Pres. Bolsonaro Says Discounted Russian Diesel Could Begin Arriving “In 60 Days”
Brazilian President Jair Bolsonaro on Monday revealed that his country would soon begin imports of cheaper diesel from Russia. 
IMAGE SOURCE: REUTERS

Reiterating his views that Western sanctions against Russia have failed, Brazilian President Jair Bolsonaro on Monday revealed that he had finalised a deal with his Russian counterpart Vladimir Putin to import cheaper diesel, as Brazil continues to battle skyrocketing fuel prices. 

In a statement, Bolsonaro said deliveries will begin within 60 days, noting, “Russia continues to do business with everyone, it seems that the economic sanctions did not work.”

This echoed a point he made just last week, when he said that while the sanctions have created ‘difficulties’ for Russia, it is “not at all what the initiators of the economic blitzkrieg against Russia were counting on.”

Given that Brazil imports 30% of its diesel, Brazilian state-run oil firm Petrobras officials told Reuters that the idea to import diesel from Russia was not surprising, while an Economy Ministry official remarked that “it makes sense.”

Reports suggest that Western sanctions have in fact strengthened Russian exports, particularly in light of skyrocketing oil and gas prices. With Russian crude being sold for as low as $70 per barrel, Russia has posted a current account surplus of $70 billion.

In fact, Brazil has sought not just Russian energy but also reached a deal for a “record amounts of fertilisers” despite war-induced disruptions. To this end, at the BRICS summit, Putin revealed that trade with all four partners had increased by 38% in the first three months of 2022, effectively bypassing the “politically motivated sanctions.” Not only Brazil, but also “oil supplies to China and India are growing noticeably,” he pointed out.

Brazil has maintained strong ties with the Kremlin since the start of the Ukraine war in February. In June, the two Presidents even discussed global food and energy security over a telephonic conversation, in which Putin assured Bolsonaro of no further disruptions to fertiliser exports.

Bolsonaro has for long maintained a neutral stance on the Russia-Ukraine war, stating that his position is “one of balance.” To this end, Brazil even abstained from voting on resolutions seeking to suspend Russia from the United Nations Human Rights Council (UNHRC), with Brazilian diplomats calling for an “independent inquiry” into the Bucha civilian massacre before taking the “drastic decision” of suspending Russia.

Furthermore, Bolsonaro visited Moscow a week before the invasion despite stern opposition from the United States (US); he expressed “solidarity” with Putin, while the Russian leader endorsed Brazil’s bid to secure a permanent seat at the UN Security Council. Bolsonaro has also spoken of his appreciation of Putin’s recognition of Brazil’s “sovereignty” over Amazon, one of the Brazilian leader’s key points of difference with US President Joe Biden.

The growing wedge between the US and Brazil was made further evident in Bolsonaro’s decision to approach Russia for help with a nuclear submarine project following the US’ refusal. Furthermore, last September, Russian nuclear energy company Rosatom penned an agreement with Brazil’s state-owned Eletronuclear that facilitates collaboration on the construction and maintenance of nuclear power plants.

The bonhomie between Brazil and Russia also seems to extend across the country’s political landscape, with former President Luiz Inácio Lula da Silva, Bolsonaro’s main rival and the current favourite to win the October election, also recently voicing only lukewarm support for Ukraine. In an interview with TIME in May, Lula opined that Ukrainian President Volodymyr Zelensky is “as responsible as [Vladimir] Putin for the war,” adding that the US, the European Union, and the North Atlantic Treaty Organization are to blame.

Russia, too, has sought Brazil’s assistance. In March, Finance Minister Anton Siluanov wrote a letter to his Brazilian counterpart Paulo Guedes asking “support to prevent political accusations and discrimination attempts in international financial institutions and multilateral fora” by the “US and its satellites” that are aimed at “isolating Russia from the international community.” In particular, he called for Guedes’ support in preventing Russia’s expulsion from the World Bank, the International Monetary Fund, and the G20. 

In pursuance of its goal of redrawing strategic alliances, Russia has been stepping up its outreach efforts not just with Brazil, but Latin America as a whole. In recent times, it has sought to forge closer cooperation with Venezuela, Cuba, Nicaragua, Argentina, and others.