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Luna (L) and Bolsonaro (R), shown in March 2021 (Image: Office of the Brazilian Presidency)
It also stemmed partly from his own close ties April 13.
with the president. Bolsonaro’s selection is likely to prove reas-
Instead, Luna has now fallen foul of Bolson- suring to international investors. Pires has a rep-
aro for much the same reasons as his predeces- utation for holding pro-market views and has
sor. He has drawn widespread criticism within written multiple articles defending Petrobras’
Brazil in recent weeks – not just for Petrobras’ efforts to uphold its right to set fuel prices with-
decision to increase petroleum product prices as out government input. He has also suggested
of March 11, in line with world crude oil prices, that Brasilia take its own approach to mitigating
but also for his defence of the NOC’s existing the economic impact of oil price increases on
degree of independence from the state. impoverished consumers, such as setting up a
In any event, Luna is now set to leave his fuel price stabilisation fund, rather than leaning
post after less than 12 months. Bolsonaro has on Petrobras in order to influence the outcome
nominated Adriano Pires, a director of the Bra- of policy questions.
zilian Centre for Infrastructure (CBIE) who has Even so, Pires probably has a difficult road
about 30 years of experience working in the oil ahead. Bolsonaro is running for re-election
industry, to serve as Petrobras’ next CEO. The this year, and he is trailing behind his left-wing
nomination is expected to clear the company’s opponent Luiz Inacio Lula da Silva. If the latter
personnel committee and secure confirmation candidate wins the vote, he is likely to put more
at the NOC’s upcoming shareholder meeting on pressure on Petrobras. ™

CADE agrees to give Petrobras

more time to sell seven refineries

CADE, the Brazilian government’s anti-trust had continued to disrupt plans for due diligence
agency, has granted the national oil company and site visits by potential investors.
(NOC) Petrobras more time to complete the sale Subsequently, Petrobras asked for another
of seven refineries included in its privatisation extension, saying it needed more time in light of
programme. internal and external economic developments,
Petrobras and the anti-trust watchdog had as well as factors related to the sale negotiations
originally agreed in 2019 that the latter would themselves.
complete the sale of all eight of the oil-processing CADE acceded to its request last week, but it
plants included in its privatisation programme declined to make the new deadlines for privati-
by December 31, 2020. Last August, though, sation of the refineries public. In a statement, it
CADE agreed to push the deadline for the final explained that it had not revealed the dates “so
sale back to December 31, 2021 on the grounds as not to harm the negotiations [over] the assets
that the coronavirus (COVID-19) pandemic to be divested.”

P10 www. NEWSBASE .com Week 13 31•March•2022