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Putin, Rouseff to discuss prospects for building up Russia-Brazil trading ties

December 14, 2012, 4:29 UTC+3
A wide range of issues is going to be discussed on the global and regional agenda, including cooperation within the BRICS group the G20k, the WTO
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MOSCOW, December 14 (Itar-Tass) —— Russian President Vladimir Putin on Friday will hold talks with the president of the Federative Republic of Brazil, Dilma Rouseff, who is in Russia on a two-day official visit, the Russian presidential press-service said. Rouseff is for the first time in Russia in the capacity of the Brazilian head of state.

“The bilateral political dialogue is gaining momentum,” the press-service said. The first meeting between the presidents of Russia and Brazil was in Los Cabos on June 19, and on March 6 and May 9 they talked on the phone.

Putin and Rouseff are going to discuss ways of building up trading and economic ties. Brazil is Russia’s largest trading partner in Latin America. It is one of the leading providers of farm produce and consumer goods on the Russian market (80 percent of Russia’s imported raw sugar, 41 percent of beef, 26 percent of coffee and 23 percent of pork).

Last year bilateral trade was up 10.2 percent to 6.5 billion dollars. In January-October this year Russia’s export to Brazil grew considerably by 7.5 percent (1.9 billion dollars). The long-term task is to build up bilateral trade to 10 billion dollars. There are certain reserves for this, mostly by increasing trade in high-tech products, machines and farm produce and developing cooperation in the energy and air and space spheres.

Investment cooperation statistics today are rather moderate (Russia’s direct accrued investments currently stand at 28.6 million dollars, and Brazil’s investments in Russia, at 5.2 million dollars). However, the overall dynamics is positive. Brazil’s market is being explored by Russian metallurgical companies. Mechel has bought out 75 percent of Brazil’s pig iron producer Usipar (200 million dollars). Severstal has acquired 25 percent of shares of the company SPG Mineracao (49 million dollars). Brazilian technologies begin to be implemented in Russia. Truck manufacturer KAMAZ together with the company Marcopolo produce busses in Neftekamsk (Bashkortostan). The plant’s capacity is 6,000 vehicles a year (investments stand at 10 million dollars).

Cooperation in the aircraft industry is developing. Russia’s OJSC Corporation VSMPO-Avisma – the world’s largest producer of titanium – meets the demand of Brazil’s aircraft-building corporation Embraer for titanium semi-finished products.

The OJSC Russian Helicopters provides civilian helicopters Mi-171A1 to Atlas Taxi Aereo for geological exploration work in the Amazon river basin. OJSC Tupolev is in talks with Brazil’s Clean Air Transporters Aereos on selling Tupolev 204 liners (12 planes). Plans are being considered for supplies to Brazil of Russia’s civil aircraft MS-21 and amphibious plane Be-200.

The presidents plan to discuss cooperation in energy. Russian businesses have been making investments in Brazil’s booming oil and gas industry. The TNK-BP signed a contract with one of Brazil’s large oil and gas companies HRT an agreement on the acquisition of a 45-percent stake in an oil and gas production project in the basin of the Solimoes river, the Amazonas state (at the initial phase the value of the contract is set at 1 billion dollars, and the next ten-year phase, up to 5 billion dollars).

In October this year NOVATEK concluded a contract with Brazil’s petrochemical company Brazchem for supplying one million tonnes of crude oil during 2013.

The corporation Energomashexpot and OJSC Power Machines provide energy equipment for a number of hydro power plants in Brazil (two turbines 44 MW each for Passo Sao Joao and three turbines for Sao Roque.

The presidents are going to pay special attention to innovations. Contracts are being implemented in the field of biotechnologies. CJSC BIOCAD last May created a venture in Brazil for the production of highly effective formulas for the treatment of oncologic diseases.

Last October, Russian Information Technologies in Brazil Day was held at the large-scale exhibition conferences Brasscom (Sao Paolo)j and Futurcom (Rio-de-Janeiro). The Russian company WebSafer concluded a contract with Brazil’s Genesis Internet for providing Russian software for the protection against fraud (12 million dollars).

Cooperation in culture and the humanitarian sphere holds a prominent place in bilateral relations. The Moscow Bolshoi’s ballet school has been open in Joinville, the Santa Catarina State.

Russia and Brazil will be cooperating in holding major international sports events – the 2014 Sochi Winter Olympics and Paralympics, the 2016 Olympics in Rio-de-Janeiro, the 2014 World Soccer Cup finals in Brazil and the 2018 Soccer Cup Finals in Russia.

A wide range of issues is going to be discussed on the global and regional agenda, including cooperation within the BRICS group the G20k, the WTO and other international organizations.

“Russia is interested in advancing cooperation with Brazil in the format of integration associations of the Latin American countries and the Caribbean - MERCOSUR, UNASUR, and CELAC,” the press service said. “During the visit a major package of documents will be signed on economic cooperation, military-technical cooperation and sports. The presidents will adopt a joint statement.”

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