Brazil greenlights study of Petrobras privatization, analysts remain skeptical
Reuters
Published Jun 02, 2022 05:04PM ET
Updated Jun 02, 2022 09:15PM ET
SAO PAULO (Reuters) - Brazil President Jair Bolsonaro's government said it aims to include state oil company Petrobras in its privatization program on Thursday, despite analysts calling it a long-shot for the far-right leader seeking reelection.
Rather than triggering privatization in itself, the move - not final until Bolsonaro signs a decree - would enable the country's Investment Partnerships Program (PPI) to start evaluating the project less than six months before presidential elections.
Bolsonaro has been a harsh critic of Petrobras fuel pricing policy amid a surge in the cost of gasoline stoked by war in Ukraine that has become a hot topic in the run-up to the elections. He also floated the idea of splitting Petrobras into various pieces as a prelude to privatizing it this week.
He argued that the company was not fulfilling its "social function" as outlined in the Brazil's constitution.
Analysts at BTG Pactual see the privatization as a "challenging task from a political perspective," adding that in the short to medium term "this should be viewed with a great deal of skepticism."
Petrobras' privatization would also need to be approved by Congress, forcing Bolsonaro to rally disparate parties to win backing to do it.
According to the PPI's special secretary, Bruno Leal, there is still no deadline for sending a Petrobras privatization bill to Congress and no defined schedule for any privatization process.
The company's inclusion in PPI's report was requested this week by the Mines and Energy Ministry.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.