March 4th, 2022


1. Brazilian agriculture minister says the war in Ukraine will affect food prices

Tereza Cristina, the Brazilian Minister of Agriculture, Livestock and Food Supply, said that the war in Ukraine will affect food prices in Brazil and that inflation rates will depend on how long the conflict lasts.

To ease the impact due to difficulties in purchasing Russian fertilizer, Tereza Cristina said the administration will launch its National Fertilizer Plan later this month. The plan is to reduce Brazilian dependency on foreign fertilizers.

O Globo: Preços de alimentos terão alta, diz ministra da Agricultura sobre impactos da Guerra
Canal Rural: Plano Nacional de Fertilizantes será lançado ainda este mês, diz ministra da Agricultura
G1: Ministra da Agricultura vai ao Canadá para tentar suprir demanda por fertilizante

2. Rise of oil prices increases discrepancy of fuel prices in the internal market

The rise of international oil prices has also increased the discrepancy of fuel prices in Brazil. The difference between prices abroad and in Brazil is the largest since 2016.

According to market estimates, the difference between Petrobras prices and fuel prices abroad increased, resulting in the cost of diesel per liter reaching R$ 1 more abroad in comparison to Brazil. Petrobras has not increased internal prices in 50 days, in the hopes that international prices will drop. In an election year like 2022, an increase in prices will have a direct impact on President Jair Bolsonaro’s popularity

Valor Econômico: Conflito leva defasagem de preços da Petrobras ao maior nível desde 2016
Valor Econômico: Defasagem de preços da Petrobras se acentua e já atinge R$ 1 no diesel e R$ 0,80 na gasolina
Folha de S. Paulo: Diesel e gasolina da Petrobras têm maior defasagem em 10 anos, diz entidade

3. Brazil votes in favor of resolution condemning the war in Ukraine, going against Bolsonaro’s position

Brazil voted in favor of the UN General Assembly’s resolution to condemn the Russian invasion of Ukraine. Brazil voted along with 140 other countries to condemn the invasion, with 5 countries voting against the resolution and 35 abstaining.

Despite Brazil’s stance at the UN, President Jair Bolsonaro has been under pressure from opposition parties and Brazilian citizens to give up his neutral stance on the matter and to publicly condemn Vladimir Putin.

G1: Assembleia Geral da ONU aprova resolução contra invasão da Ucrânia pela Rússia; Brasil vota a favor, junto a ampla maioria de países
VEJA: Bolsonaro reitera neutralidade sobre conflito entre Rússia e Ucrânia
Poder360: Diplomata ucraniano diz que Bolsonaro está “mal informado”

4. Government supports the mining of indigenous lands for fertilizer production

The geopolitical crisis in Eastern Europe led the Brazilian government to find alternatives to foreign fertilizers and increase national production. The solution, according to the administration, is to authorize the mining of indigenous lands. Government leaders in Congress have brought forward bill 191/2020 for voting, authorizing this practice.

The issue is controversial. The opposition accuses the government of using a war to get the bill approved. The administration argues that without such measures, food prices are likely to increase. Price increases would also affect President Jair Bolsonaro’s popularity.

Folha de S. Paulo: Bolsonaro usa possível falta de fertilizantes da Rússia para defender mineração em terras indígenas
Valor Econômico: Bolsonaro quer exploração mineral de terra indígena
Câmara dos Deputados: Projeto do governo viabiliza exploração de minérios em terras indígenas

5. Solar power in Brazil hits 14 GW, surpassing the Itaipu hydroelectric dam

This week, Federal Supreme Court Justice André Mendonça voted against the R$ 4.9 billion electoral fund for 2022. According to Mendonca, the amount for the fund should revert to the 2020 level of R$ 2 billion, albeit with correction for inflation. The decision comes after Partido Novo went to the Federal Supreme Court to question the amount, claiming that Congress should not have approved it as the electoral fund is the responsibility of the federal administration. Mendonça said that Congress did not respect the Brazilian Constitution by approving an unjustified increase to the fund.

Valor Econômico: Brasil alcança 14 GW de capacidade instalada na geração solar e supera Itaipu
Gov.BR: Fontes eólica e solar transformam região Nordeste em exportadora líquida de energia elétrica
CNN Brasil: Geração solar no Brasil atinge 14 GW, potência equivalente à usina de Itaipu