Bolsonaro-Putin agreement: Russian oil could arrive in Brazil in September

Increasing exports

Despite the war in Ukraine, Brazil wants to consolidate its trade relationship with Russia by expanding Russian imports substantially.

Doubling business

So far, it seems that this intention will become a reality. Brazil has already doubled the imports it receives from Russia.

What that means in real terms

In real terms, this means a jump in the value of these imports from $1.5 billion between March and June in 2021 to $3.2 billion over the same period in 2022.

Making this relationship stronger

Obviously, the arrival of Russian oil in Brazil would only strengthen this burgeoning commercial relationship further.

An official announcement

Carlos Alberto Franco França, Brazil's Minister of Foreign Affairs, announced in July 2022 that Brazil was planning to buy more fuel from Russia.

"Safe and reliable"

The Brazilian Foreign Minister pointed to Russia as a "safe and reliable" supplier.

Presidential backing

Brazilian President Jair Bolsonaro has also been vocal on the issue.

Confirmed by Bolsonaro

"Negotiations continue. I think that by next month (September 2022), there is a chance that it will start to arrive," the Brazilian president confirmed on CNN.

Difficult logistics

While Russian oil could be fueling Brazilian cars soon, the logistics of redirecting oil reserves that had been intended for Europe to Brazil won't be easy.

Looking at the competition

Given these potential complications, it is no surprise that Brazil is exploring other options. "We are also negotiating with other countries to buy diesel," Jair Bolsonaro told CNN.

Favourable conditions from Russia

However, Russian oil is the one that offers Brazilians better conditions than other countries, as Jair Bolsonaro himself has recognized.

Brazil, against Russian sanctions

In fact, Brazil has shown its opposition to Western sanctions on Russia, and the country also defended Russia's right to participate in the G20 summit.

Investment

This support could be explained by the fact that Bolsonaro sees Russian investment as a way to improve the tough domestic economic situation.

Looming elections

Bolsonaro wants Russian investment to prioritize oil refineries. The national elections in October will decide this, and until a president is elected, international investment in the country, in general, is on hold. Much is at stake for Brazil in the coming weeks.