Brazil - 04

Brazil: Temer Breathes Easier as Congress Blocks Criminal Charge

Last week, the Chamber of Deputies voted to prevent the corruption charge against Temer from advancing to the Supreme Court for consideration. 263 deputies voted in favor of Temer, while 227 voted against him. (At least two thirds of the lower house was required in order to push the criminal charge forward.) Ever since the

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Brazil: Arrest of Former CEO Unlikely to Slow Petrobras’ Recovery

Aldemir Bendine, the former CEO of state-owned oil company Petrobras and state-owned bank Banco do Brasil, was arrested last week within the context of the Lava Jato Federal Police investigations. Bendine (see our Personality of the Week) is suspected of having received $3mn reais (roughly $1mn) in bribes from business executives of the construction conglomerate

Brazil - 01

Brazil: Lula Sentencing Deepens Political Polarization, but Oil Policy Appears Secure

Lula and his late wife Marisa Leticia were charged with receiving approximately $1.1mn in illegal financial benefits from a construction company, OAS, for the renovation of a beachfront apartment in the coastal town of Guaruja (in Sao Paulo state). In return, according to the prosecution, Lula politically favored OAS in contracts with Petrobras. After a

Brazil - 02

Brazil: Possible IPO for Petrobras’ Distribution Unit: Opportunity Outweighs Controversy

On 22 June Petrobras CEO Pedro Parente stated that he will soon ask the board to deliberate on an IPO for the company’s distribution arm, BR Distribuidora. In statements later divulged in the local press, Parente stressed that the timing seems right for the move, given the significant number of IPOs in Brazil this year.

Brazil - 03

Brazil: Temer Charged with Corruption: Political and Economic Implications

This week the Attorney General’s Office filed a criminal charge against President Temer, of the Brazilian Democratic Movement Party (PMDB), for involvement in corruption. According to Attorney General Rodrigo Janot (see our Personality of the Week), there is sufficient evidence to prove that Temer took part in a bribery scheme through Rodrigo Rocha Loures, another

Brazil - 09

Brazil: Superior Electoral Tribunal Acquits Temer, but Further Challenges Loom

Temer was on trial for illegal campaign financing accusations that surfaced in 2014, when he was vice president during Dilma Rousseff’s presidency. But while the TSE acquittal is an important lifeline for Temer in his fight to keep the presidency, the trial was only one of several judicial threats that he must face in the

Brazil - 04

Brazil: Oil Unions Call for Petrobras Resignations, Ending Truce

On 8 June the FUP – Brazil’s largest organization of oil unions – and a number of other leftist groups, such as the Main Workers’ Central (CUT) and the Landless Workers’ Movement (MST) protested in Rio de Janeiro against the “privatization” of Petrobras. They also called for Parente’s resignation as well as those of all

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Brazil: Oil Royalties Decision: Uncertainty Remains

The CNPE published two resolutions on 3 May that established directives for altering the reference price of oil, which is a key factor in the ANP’s royalty calculations. In contrast to previous disputes with the ANP, this time the CNPE recognized the competence of the ANP to make final decisions regarding the methodology. One resolution

Brazil - 01

Brazil: Royalty Changes: Is a Decision Nearing?

According to a report published this week by daily newspaper Folha de Sao Paulo, the Brazilian government is considering the possibility of gradually implementing a revision of oil sector royalties. The measure would be some form of compromise aimed at ending a long-winded battle over current charges. Over the last year and a half, the

Brazil - 02

Brazil: Parente Stays On as CEO: A Good Moment for Petrobras

Petrobras announced this week that CEO Pedro Parente’s tenure has been renewed for an additional two years to 2019. The decision was approved in a board meeting on 26 March. Parente took over as CEO in May 2016 following Aldemir Bendine’s resignation. Bendine, who had served as the head of the state-owned Banco do Brasil,