Russia's attack on Ukraine is causing problems in the economy of the whole world, and Brazil is no different. As in the country, in Rio Grande do Sul the difference is already beginning to be felt in the businesses that use chemicals, oil and natural gas.
With the expulsion of Russia from Swift, which is a consortium that allows negotiations between countries around the world, it is almost impossible for Brazil to negotiate with Russia.
see more
Ninth economy on the planet, Brazil has a minority of citizens with…
White goods: see which products the government wants to reduce…
For Rio Grande do Sul, this lack of negotiation prevents the purchase of fertilizers and products from the petrochemical industry, in addition to preventing the export of soy, tobacco and meat. But for UFRGS economist Marcelo Portugal, the sector that suffers the most in this economic gap is agriculture.
According to the Minister of Agriculture, Tereza Cristina, the country is looking for other alternatives for the purchase of fertilizers. President Jair Bolsonaro, on his social media, asked Congress to approve the law that allows mining on indigenous lands, so that the country will no longer depend on imports from Russia.
Russia accounts for 65% of bilateral trade in Brazil, and both Russia and Ukraine are major sellers of oil, gas, oil and wheat.
“When there is a lack of wheat, for example, the demand for corn and soybeans will increase and will bring about an increase in other commodities. RS is an export economy, just like Brazil in terms of agricultural commodities, and, with the exchange rate and rising prices, it ends up benefiting”, analyzes Marcelo Portugal.
The problem is that the state is experiencing a severe drought, which is already increasing the value of food, which will consequently worsen due to the lack of a market.
Rio Grande do Sul is Russia's second largest importer, and among the most imported products are potassium chloride and fertilizers.
According to the head of the Federation of Industries of RS, André Nunes de Nunes, the chaos that the corona virus pandemic has generated in economy made the country compensate for the lack of important products for oil production by exporting naphtha from Russia and Ukraine.
And last year alone, Rio Grande do Sul totaled US$ 912.8 million between imports and exports.
“It's important to have an idea of how integrated the markets are. The impacts that we are already feeling are the increase in costs, even in commodities indirectly linked to countries in conflict, and this will reach the final consumer”, said André Nunes.
André Nunes also points out the problems beyond the commercial ones: “The world still hasn't managed to organize itself with the pandemic, which has impacted all businesses in a generalized way. Just look at the price of industrialized goods, such as the automobile chain, and now that adds up to the uncertainty of a war,” he concludes.
Lover of movies and series and everything that involves cinema. An active curious on the networks, always connected to information about the web.
