Imports of Russian diesel fuel to Brazil in 2023 increased by 370%

Brazil has increased imports of Russian diesel by 370% in 2023, and Brazil’s Minister of Mines and Energy Alexandre Silveira justified the increase on prices rather than diplomatic issues.

Silveira explained to Efe that since the beginning of the year, Russian diesel fuel has had “extremely competitive” prices, but assured that “in just over a month this cycle has been declining.”

“This has absolutely nothing to do with international diplomatic relations. It has to do with the domestic market,” assured Silveira, who is in New York to present the Brazilian government’s energy transition projects to the United Nations (UN) and international investors.

According to official Brazilian statistics, Brazilian fuel imports from Russia increased by 370% between January and August compared to the same period last year, amounting to US$2.6 billion in those eight months.

Thanks to this significant growth, Russia became Brazil’s second-largest fuel supplier after the United States, a country whose fuel purchases fell 61% to $3.4 billion over the same period.

The government of Brazilian President Luiz Inácio Lula da Silva maintains a neutral position in the war in Ukraine and defends at international forums the need for an immediate cessation of hostilities and the search for a peaceful solution through negotiations between Kiev and Moscow.

Silveira attributed high fuel prices in the Brazilian market to the “irresponsible” policy of former President Jair Bolsonaro to “dismantle” oil refineries being built in the country.

In this sense, he assured that the government of Lula da Silva is working to resume these works with the aim of increasing domestic fuel production and achieving self-sufficiency in diesel and gasoline.

Brazil is a crude oil producing and exporting country, but due to low refining capacity, it is forced to import derivative products to meet domestic demand.