Trade volumes between Brazil and Russia are on track to reach a record high of US$10 billion by the end of 2022, according to Rodrigo Baena Soares, Brazil’s Ambassador to Russia.
“Some US$10 billion is projected by the New Year,” he said, adding that Brazil “purchases a lot of fertilizer and fuel, and it exports a great deal of soybeans, and moreover, it exports equipment and sugar to Russia.”
Trade turnover between the two countries has risen by 7% since the beginning of the year, currently standing at around US$8 billion, Soares said. The trade growth is due to an increase in exports and imports of traditional goods for trade between the two countries, including items such as fertilizers and agricultural products. In particular, Brazilian producers plan to increase beef exports to Russia.
Russian businessmen should also pay attention to Brazil’s industrial production, with agricultural equipment, but also a wide range of industrial components and materials, from plastic products to composite aggregates in aeronautical engineering. Brazil is Russia’s largest trade partner in Latin America, with both countries having every opportunity for expansion of cooperation in the area of high technologies in particular.
However, along with secondary sanctions there are several barriers in trade relations between the two countries, with one of the main obstacles for the development of trade shipments is the issue of shipping insurance registration, which is complicated for Russian counteragents due to sanctions. This issue may be solved should Brazil accept Russian insurance coverage or third parties such as Turkiye and India will act as brokers.
Both countries are members of the BRICS group of nations, where multilateral trade has also been booming in 2022.