Brazil profits from geopolitical encirclement of Russia.
Boycotted in international trade with the US and Europe, Vladimir Putin's Russia responds with a ban on imports of products from those origins; Brazil directly benefits; "it's a revolution," defines the Secretary of Agricultural Policy; sales of meat, corn and soy, as well as poultry, fruits, vegetables and processed foods, could triple; the alliance forged by President Dilma Rousseff with the Russian leader during the BRICS meeting depends on luck; the geopolitical siege of Putin by rich countries opens a historic opportunity for progress in relations between the giants Brazil and Russia.
247 - The geopolitical encirclement of Russia by the United States and European countries will directly benefit Brazil in the very short term. In a reciprocal move to the expanded embargo imposed by rich countries on Russian products, President Vladimir Putin has ordered a ban on the import of products from these and other countries, a group that includes Australia and could still grow. Brazil is not on this blacklist and should shine in the list of purchases that the Russians will have to make to replace the banned countries. "Agribusiness could undergo a revolution," assessed the National Secretary of Agricultural Policy, Seneri Paludo. Orders for meat, poultry, corn, and soybeans, which Russia already buys from Brazil, could double or even triple immediately.
Based on understandings solidified in July during the BRICS summit in Fortaleza and Brasília, President Dilma Rousseff has grown closer to Putin. They signed bilateral cooperation agreements in various areas, including technology. Within the organization that also includes China, India, and South Africa, they became partners in the BRICS bank and will pool reserves to create a US$100 billion fund to provide financial stability to the group, thus consolidating it as a bloc.
The circumstances surrounding the boycott of Putin by wealthy nations are far from involving Brazil. In all diplomatic forums, Brazilian representatives have remained silent regarding the crisis in Ukraine, which worsened after the Malaysia Airlines flight was shot down in mid-air with 298 people on board. Strong suspicions of responsibility on the part of pro-Russian rebels have triggered a series of new sanctions from wealthy nations, led by the Barack Obama administration. Putin, who until then had reacted coldly to the escalating boycotts, has now decided to retaliate. The ban on imports of American and European products will be met with the opening of new trade borders by the Eastern Bloc giant.
With regard to Brazil, the usual timid trade, marked by objections, may finally take off. Bilateral relations that never fully materialized can now advance, based on the natural dynamics of international events. Not even Obama can complain about this rapprochement. He knows he himself provoked it.
Below is a news article from Agência Brasil regarding this matter:
Russia's embargo opens a huge window for Brazil to export meat.
Kelly Oliveira – Reporter for Agência Brasil
The announcement of a Russian embargo on the import of agricultural products from the United States and European countries opens "a great window for Brazil" to enter the Russian market, according to the Secretary of Agricultural Policy of the Ministry of Agriculture, Livestock and Supply, Seneri Paludo.
Today (7), Russia banned the import of food products from European countries and the United States, in response to Western sanctions against Moscow. This ban includes beef, pork, poultry, fish, cheese, milk, vegetables and fruits from the United States, the European Union and also Australia, Canada and Norway. The United States and Europe imposed economic sanctions on Russia for its involvement in the war in Ukraine and support for pro-Russian rebels in the east of the country.
"From an agricultural policy standpoint, it's positive," said the secretary. Paludo added that Russia is a major consumer not only of grains but also of meat. According to Paludo, the Russian government's measure could lead to a "revolution" in Brazilian exports of meat, corn, and soybeans. The secretary also assessed that this decision could have a similar effect to China's entry into the World Trade Organization (WTO) in 2001, when there was a "seismic shock" in the commodities market (primary products with international pricing).