President Bolsonaro Announces Possibility Of Buying Diesel From Russia After Conversation With Vladimir Putin

President Told Supporters That There Is a Chance to Purchase Diesel from Russia, Considering It Would Definitely Be “More Affordable”

Although Russia has been facing, since the invasion of Ukraine in February, various processes of isolation in the international arena, including the imposition of sanctions, President Jair Bolsonaro stated on Monday (the 27th) that Brazil may begin purchasing diesel from the country.

Bolsonaro also announced that the possibility of the trade exchange was negotiated through a phone call with Russian President Vladimir Putin on that same day. This call was confirmed by the Minister of Foreign Affairs, Carlos França.

As the president stated to supporters in front of the Palácio da Alvorada, the conversation with Putin addressed trade exchanges between the two countries, as well as food security and energy security. Bolsonaro added that there is a chance that the purchase of diesel from Russia could occur, as the price of fuel would definitely be lower.

Furthermore, the head of the Executive clarified that fuel prices could decrease if the Brent crude oil price in the international market continues to fall, but he noted that, ultimately, the price charged in the country is determined by Petrobras. On Monday, Brent oil rose, trading on the London market at US$ 110.98 per barrel.

In this regard, the president of Brazil added, amid another criticism of Petrobras’s pricing policy, that transparency is of utmost necessity in all areas, also noting that some governors have started to reduce the ICMS.

As a way to respond to the sanction of the law that established a ceiling of 18% for the ICMS tax on fuels, some governors, such as those from São Paulo and Goiás, began, on Monday, to reduce the tax rates in their respective states.

Putin Confirms Call with Bolsonaro, Which Did Not Just Address Diesel Purchase

President Vladimir Putin confirmed, in a statement published by the Kremlin, the completion of the phone call with Jair Bolsonaro. During the conversation, the discussion also touched on the supply of Russian fertilizers to Brazilian agribusiness, an obligation that Putin committed to fulfill.

In this context, it is noteworthy that Russia is one of the world’s leading producers of this input. In May, Bolsonaro had already stated that Brazil’s fertilizer stocks are secured until the beginning of next year.

Thus, it is possible to understand the dependence on fertilizers as a key factor in Bolsonaro’s neutral stance regarding the war between Russia and Ukraine. According to the head of the Executive, a balanced position should be adopted in light of this conflicting situation, considering that the country cannot survive without fertilizers.

Since February of this year, when Bolsonaro made a visit to Russia, the two presidents have been strengthening their relations.

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Diesel Price Surpasses Gasoline Price for the First Time Since 2004 and Reflects Fuel Price Hike in the International Market, Says ANP

The National Agency of Petroleum, Natural Gas and Biofuels (ANP) released data on Friday (06/24) regarding fuel prices in Brazil during the last week. For the end consumer, the scenario is becoming increasingly critical, as the high prices in the international market are influencing Brazil and diesel has surpassed gasoline prices at Brazilian gas stations this week, raising concerns in the segment.

For the first time since 2004, diesel prices per liter have exceeded gasoline prices per liter in much of Brazilian territory, according to the data released by the ANP.

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