Trade between Russia and Brazil surpasses the historic high in 2011 reaching USD 7.5 billion in 2021

The Russian Minister of Economic Development Maxim Reshetnikov attended a meeting with Brazilian President Jair Bolsonaro and the leaders of Russian companies.

“Cooperation with Brazil is gathering pace. Last year we not only restored trade turnover after the slump in 2020, but surpassed the historic high in 2011, reaching USD 7.5 billion in 2021,” stated Maxim Reshetnikov.

Russian exports to Brazil mainly consist of chemical products, while imports are made up of food and agricultural raw materials.

“Brazil is one of the world’s largest fertilizer markets, as demand for the country’s main agricultural product – soya – is constantly growing. Half of the country’s demand for phosphate fertilizers is met by import. Brazil imports 70% of its fertilizers from Russia, a figure that will increase this year,” said Veronika Nikishina, General Director of REC.

The Head of the Ministry of Economic Development also noted serious prospects for further cooperation in sustainable development and the green agenda amongst the work of BRICS. “As part of the Paris agreement, we believe it is important to strive towards common approaches towards climate projects on the path towards carbon neutrality. For our countries, uptake in the forestry sector is particularly important. We joined the Glasgow Leaders’ Declaration on Forests and Land Use. It would be right to work together to achieve the equivalent treatment of the results of projects to reduce and absorb emissions, and to ensure high quality forest carbon credits and faith in them. We could begin with consultations on this issue and by exchanging experience on issuing credits from forest projects,” said Maksim Reshetnikov.

The Minister also expressed his readiness to share experiences in attracting green investment through a project taxonomy. It includes the main forms of activity that have a positive effect on the environment, including in bioenergy. “This product is demanded by Russian businesses, and we know that your interest in sustainable finance is also growing. The tool is becoming more widespread and it is important to bring our regulation closer at an early stage,” said Maxim Reshetnikov.

The participants also noted that expanding the areas of partnership may require new measures to improve the business climate.

“For the Russian side, lifting the anti-dumping measures imposed by Brazil on certain Russian goods important. In addition, Russian exporters face difficulties in customs regulations and obtaining licenses related to import operations. Another serious problem is the lack of interbank cooperation, namely the difficulties in opening letters of credit in favour of Russian partners. We are interested in the Central Bank of Brazil entering such an agreement with Russian partners. Given that the main export from Russia to Brazil is eco-efficient mineral fertilizers, we invite our Brazilian colleagues to join the Green Club, a community of countries that produce clean agricultural products,” said Andrey Guryev, PhosAgro’s CEO and Chair of the Russia-Brazil Business Council.

Speaking about the prospects for cooperation, Maxim Reshetnikov stressed the importance of increasing investment projects in the small and medium-sized business sector. Agriculture, pharmaceuticals, the digital economy, and e-commerce can become points for growth. Russian companies have something to offer in these sectors.