Brazil continues to import Russian diesel to help contain fuel prices for Brazilian motorists, Minister of Mines and Energy Alexander Silveira said in an interview.
Russia has strengthened its position as the largest fuel supplier in Brazil this year, surpassing the United States in this regard. Silvera, who is in Washington to discuss cooperation on the energy transition, sees no pressure from the Biden administration to stop imports.
If the import of diesel, whether from Russia or any other country, keeps domestic prices at low levels, this is not a concern, said Silveira. There is an understanding that developing countries need to expand trade relations to strengthen their economic position and adjust the state of inequality.
The United States and its allies are trying to limit the flow of oil revenues to Russia to reduce the available funds that enable it to wage war in Ukraine.
The minister added that the Brazilian state-owned oil giant Petrobras also has to compete with importers, and that its next five-year strategic plan will focus on achieving the country’s self-sufficiency in terms of gasoline and diesel production.
The company, also known in Rio de Janeiro as Petroleo Brasileiro, is tasked with protecting Latin America’s largest economy from rising fuel prices in the event of an escalation of the war between Israel and Hamas to other countries in the Middle East. Silvera said that Petrobras is taking into account the costs of domestic production under the new fuel price policy announced in May, which will help reduce the impact of fluctuations in global oil markets.
Brazil is also importing oil and natural gas next to Russian diesel this year. Two tankers loaded with Russian Arctic crude have been unloaded in northeastern Brazil since early September, and Brazil imported a cargo of liquefied natural gas from Russia in May.
