Brazil may boost supplies of industrial goods to the sanctions-hit country, Ambassador Rodrigo Baena Soares says
Western sanctions on Russia intended to undermine its economy have opened a “window of opportunity” for Brazil, the country’s ambassador, Rodrigo Baena Soares, said on Monday.
According to the diplomat, businesses in both countries have adapted to sanctions and managed to overcome difficulties created as a result. Although Western penalties have created logistical and supply hurdles, the diplomat doesn’t see any substantial obstacles for Russia-Brazil cooperation.
“Of course, the sanctions regime imposed against Russia has created a number of problems not only for Brazil but also for many countries and raised the question of payment, logistics, and insurance systems. Insurance today is much more expensive than it used to be. Accordingly, the products will become more expensive,” Soares noted.
Last year, Russia became Brazil’s fifth largest foreign trade partner, up from eleventh in 2021, and bilateral relations look promising, according to the envoy. Overall trade between the countries totaled $2.2 billion in the first quarter of the year, figures showed.
Brazil has not joined Western sanctions on Moscow and is ready to expand cooperation beyond commodity trade, particularly in industrial technology. Soares emphasized that his country can boost the exports of industrial goods to Russia in areas such as mechanical engineering, equipment, and agricultural services, adding that these issues are being discussed with Russian entrepreneurs.
“We can provide Russia with a lot of equipment and technology that was previously imported, for example, from European countries or the US,” Soares said.
“We could increase cooperation between our countries in this area and not limit ourselves to agriculture, although it is very important for both Brazil and Russia. But we must try to get a more complete and diversified product portfolio,” the ambassador added.
Analysts have pointed out that Western sanctions on Moscow have pushed the BRICS nations closer. According to them, Brazil, Russia, India, China, and South Africa are creating stronger economic ties and new supply chains.
At the recent BRICS summit in South Africa, Brazilian President Luiz Inacio Lula da Silva highlighted that the alliance is continuing to assess the possibility of a common currency.
For more stories on economy & finance visit RT’s business section