President Jair Bolsonaro announced last week that former Defense Minister
Following standard procedure, Petrobras’ board voted on Tuesday to summon an extraordinary general assembly in order to elect Silva e Luna a board member, replacing
Analysts said the nomination signaled to investors that political interests would take priority over the financial health of one of Brazil’s most iconic companies, and
“If he (Bolsonaro) had dealt with it in a different way, it would have been a more natural path. The way Bolsonaro used his power ... generated some tension in the market,” said
Over the weekend, as Petrobras’ shares were plunging some 20%, Bolsonaro warned that there was more was to come. “We’re going to stick our finger into the electricity sector, which is another problem,” he said.
During her administration, which ended with impeachment, President
On the campaign trail in 2018, Bolsonaro openly spoke of his disinterest in economic policy, referring all questions to a
Petrobras’ current chief executive, Castello Branco, studied at the same university and Guedes chose him to lead the company. In recent years, executives have been working to restructure the company through the sale of non-strategic assets, using the proceeds to pay off debts and make investments. Castello Branco’s mandate is up at the end of March.
Bolsonaro’s decision “shows a weakening of the economy minister and his influence on the president,” said
There is even concern that Guedes could resign, some analysts said, and that another general or someone aligned with Bolsonaro’s interventionist instincts could take his place. “That, in the market’s point of view, would be disastrous,” Braga added.
Aragão said Bolsonaro chose in Luna someone he could trust. But Luna may not be able to prevent fuel price readjustments on his own, he said.
“We have to remember
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