(Bloomberg) — Brazil is negotiating to buy cheaper diesel from Russia as part of a strategy to reduce domestic fuel prices, according to President Jair Bolsonaro.
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The deal would come after Bolsonaro visited President Vladimir Putin in February, just days before Russia invaded Ukraine, in a bid to ensure a steady supply of fertilizer exports to Brazil.
“I’ll likely buy cheaper diesel from Russia,” the president told supporters on Monday as he left the residential palace in Brasilia, adding that gasoline prices are also falling after most state governors agreed to reduce taxes on fuel. “Everything is going well in Brazil.”
High fuel prices and inflation have been the main economic challenges for Bolsonaro as he seeks re-election in October. The conservative leader has been trailing leftist former President Luiz Inacio Lula da Silva in all major opinion polls less than three months before the vote.
Read More: Brazil’s Bolsonaro Backs Neutral View on Russia Invading Ukraine
Despite sanctions imposed by the US and its allies on Russia, the Brazilian government has continued to negotiate with Moscow as it seeks to remain neutral about the conflict.
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