Brazil-Russia relations: The Brazilian ambassador to Russia, Rodrigo de Lima Baena Soares has announced that the nation is looking to receive investments in its energy sector from the Russian gas giant Gazprom.
He said, “We have a new legal framework for the Brazilian gas sector, we expect investments from Gazprom in Brazil so that we have a serious presence of a large Russian company.”
Brazil-Russia Expanding energy relations
According to Brazil’s National Confederation of Industry, Brazilian foreign investment could reach around $29 billion by 2030 due to a new law. Further, this new request from Brazil to Russia to invest in energy sector is significant. Brazil and Russia, both members of BRICS, have been working to strengthen their energy ties. In 2020, Brazil highlighted Russia as a strategic partner and a dependable provider of diesel. The two countries could collaborate more closely in the production and processing of oil and gas. Also, in developing nuclear power in a peaceful manner.
This will help Brazilian gas sector. Brazil’s oil sector is already expected to be among top five oil exporter in the world. It has a daily average production of 5.3 million barrels of oil equivalent.
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In late September, Brazilian ENBPar and Rosatom of Russia inked a Memorandum of Understanding. It is meant to discuss and implement technology transfer for the formation of a consortium of firms providing nuclear services and supplies. Further, it would also maintain, repair, and upgrade hydroelectric power plants.
Russia-Brazil relations and Lula
Amidst the Russia-Ukraine war, Brazil under Jair Bolsonaro, had been hesitant to oppose Russia. It was widely speculated, that the new President may change the course. But Lula da Silva hasn’t done anything extreme that would harm Brazil-Russia relations. Lula was in office from 2003 to 2010, this was during Putin’s first presidency.
After election results, Presidents of both the respective countries even conversed on a phone call. Luiz Inacio Lula da Silva, revealed that Vladimir Putin, had contacted him to offer congratulations and discuss the possibility of furthering ties between the two countries.
Russia is leaving no stone unturned to further ties with Lula’s Brazil. After the oath ceremony, Valentina Matvienko, head of Russia’s upper house, said that she had conveyed a written communication from the President of the Russian Federation to Lula.
Matvienko said, “I delivered a written message from the President of the Russian Federation to the deeply respected President of Brazil and also confirmed that we are expecting him in Moscow when his schedule allows.”
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Negating western sanctions
The Western sanctions on Russia threatens Brazil’s agriculture industry. After the ban on Russian fertilizers, Brazilians were worried about their ability to obtain fertilizer in the future.
Approximately, 85% of the fertilizer used in Brazil is imported, with one quarter of that coming from Russia, the biggest exporter of fertilizer in the world. These imports are essential for the country as agricultural exports are a major contributor to the Brazilian economy.
Then, Putin came to Brazil’s rescue. During a phone conversation with ex-Brazilian President Jair Bolsonaro last year, Putin promised to ensure that Brazil had a reliable supply of fertilizers.
Brazil has also helped Russia defy Western sanctions. Russian exports to Brazil have continued, as Brazilian customers have been finding alternate methods to do business with Moscow. The New York Times revealed that, due to the sanctions, Brazilian purchasers have been making use of international banking entities as intermediaries to remunerate Russian vendors. New York Times also revealed that since Russia’s incursion into Ukraine, the total amount of trade between Brazil and Russia has risen by more than 100 percent.
The two countries have a long history of cooperation, and Brazil believes that it is important to maintain close ties with Russia. Be it economic, defence or energy, Brazil and Russia are inter-dependent on each other. Russia also realizes Brazil’s significance. So, whether it’s Bolsonaro or Lula, it won’t want to lose Brazil as a partner.
