Brazillargest economy in Latin America, has dramatically increased its imports since Russiawith whom it maintains solid trade despite the war in Ukraine and at a time when the West is trying to isolate the government of Vladimir Putin.
Apart from huge logistical difficulties, bilateral trade flow was barely affected after the February 24 invasion of Ukraine by Russian troops, according to the Brazilian Ministry of Economy. Rather the opposite.
In the growth phase from 2021, Russian imports between March and June amounted to $3,237 million, more than double the value recorded in the same months last year ($1,572 million).
Brazilian exports fell just 10% in the same comparison ($521 million vs. $577 million) amid a siege of sanctions against Russia.
Jair Bolsonaro’s government, which has maintained a “neutral” stance in the face of conflict, said this week that it had “nearly closed” an agreement to buy Russian diesel “as much as possible”.
“We are looking for safe and very reliable diesel fuel suppliers, and Russia is one of them,” Brazilian Foreign Minister Carlos França said at UN headquarters, distancing himself from the US and EU, which have imposed a gradual embargo on oil. Russian.
International trade experts consulted by Efe reject the notion that these deals are a gesture of “political support” for Putin.
“Deep down, Brazil is pursuing its own interests,” Victor do Prado, senior member of the international trade and global economy division at the Brazilian Center for International Relations (Cebri), told Efe.
Although Professor Edmar Almeida of the Energy Institute of the Pontifical Catholic University of Rio de Janeiro (PUC-Rio) praises the “diplomatic efforts” of the Bolsonaro administration to ensure that “Russia sells its products to Brazilian companies.”
RUSSIAN FERTILIZERS, THE KEY FOR BRAZIL
A key product of Russian imports are chemical fertilizers, which are the key to a strong Brazilian agriculture. In the first half of this year, they accounted for 77% of purchases.
Russia is the main supplier of fertilizers Brazil. A quarter of what he consumes comes from there.
According to Rodrigo Cesar, professor at the School of International Relations of the Getúlio Vargas Foundation (FGV), Brazil “is waiting for exports, fearing that Russia will not be able to continue deliveries.”
This increase in demand, together with logistical problems, led to a sharp rise in prices, which affected the trade balance, Cesar said.
Similarly, Prado, who held senior positions at the World Trade Organization (WTO), recalls that this growth occurred before the war and coincided with the expansion of the Brazilian countryside, which also increased fertilizer purchases from other producers, such as Morocco. .
In terms of exports, in the first half of the year, Brazil sold mainly soybeans (37% of the total) and sugar (21%) to Russia, without a drop in sales due to the war.
Keeping the flow is not easy. The sanctions made international payments to Russian banks extremely difficult.
According to Gilmar Menezes, executive director of the Brazilian-Russian Chamber of Commerce, one solution was to run them through subsidiaries that “many Russian companies” have in countries like “Kazakhstan, Turkey, China and India.” Industry and tourism.
In addition, unlike the forces of the West, Bolsonaro’s executive branch has not adopted or supported sanctions against Russia, its partner in the BRICS group (Brazil, Russia, India, China and South Africa).
“Brazil has no tradition of imposing sanctions. If there is a business opportunity, she does it,” Cesar says.
AND NOW DIESEL…
In this seeming two-way fluidity Brazilwho has a temporary seat on the UN Security Council, expects to start receiving Russian diesel within “60 days,” according to Bolsonaro, who stressed the need to buy from those who “sell the cheapest.”
“Russia continues to do business with the whole world, it seems that economic sanctions have not worked,” said the far-right leader, who visited Putin in Moscow in February on the eve of the war, with whom he also spoke by phone on March 27. June.
But this latest diesel move has surprised some analysts because of the great difficulty it will entail to transport it out of Russia.
Brazil, which imports almost a third of its diesel fuel consumption, has 50 days of reserves, according to official calculations, which are added to warnings due to the risk of shortages in the second semester, when the country holds elections in which Bolsonaro will seek to renew his mandate.
(EFE)
Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.