Privatizing Petrobras would take up to 4 years, says Bolsonaro

President Jair Bolsonaro evaluated this Monday (6) as “very difficult” a privatization of Petrobras and estimated that the company’s sale process could take up to four years. Bolsonaro also said that Economy Minister Paulo Guedes will stay in government in the event of re-election, but admitted that there is pressure to replace the minister.

In an interview with Terraviva, the president also said that the eventual sale of the state-owned company would depend on a correct model, and pointed out that it is not possible to simply transfer the company to whoever pays the most.

“The privatization of Petrobras is very difficult. I talked to the Minister of Mines and Energy (Adolfo Sachsida), he has this intention, he kicked off, but he hardly goes ahead with it”, said the president in the interview.

“If everything goes right, it would take about four years. And you have to modulate it there, it’s not just whoever pays the most will take it. You now have a state monopoly in here, there would be another private monopoly out there”, he added.

Last week, the CPPI (Council of the Investment Partnerships Program) approved the recommendation of Petrobras’ qualification for evaluation studies for privatization.

In a first step, according to the special secretary of the PPI (Investment Partnerships Program), Bruno Leal, the body’s resolution recommends qualification to the President of the Republic, so that the process can move forward.

If the president accepts the CPPI’s recommendation, Leal explained, a decree on the matter will be issued.

The Minister of Mines and Energy has defended the privatization of Petrobras. He took over the post amid Bolsonaro’s dissatisfaction with the recent increases in fuel prices announced by the state-owned company and, days after taking office, a new change in command of the oil company was announced, which depends on procedures within the company.

In the interview with Terraviva, Bolsonaro reiterated claims that Petrobras has an exaggerated profit and complained about what he called “enormous bureaucracy” to make changes to the state-owned company.

“Petrobras has enormous greed, Petrobras’ profit is somewhat exaggerated,” said the president.

“Petrobras, we are trying to change. The minister of Mines and Energy has changed and now wants to change all of Petrobras. But there is a difficulty, a council meeting, a huge bureaucracy and it takes time. I hope that by then there will not be a new increase in fuel, because I have no share in the increase in the price of fuel. As for me, it wouldn’t increase.”

Bolsonaro also said that the state-owned company is “hostage to minority shareholders” and that Petrobras’ profits are helping to pay for the retirement of people outside Brazil at the expense of the sacrifice of the Brazilian population affected by the rise in fuel prices.

At the beginning of May, Petrobras approved the distribution of dividends of R$ 48.5 billion. Although minority shareholders also receive, the Federal Government, as the majority shareholder, takes most of the remuneration.

Bolsonaro says Guedes stays in case of reelection, but admits pressure

Bolsonaro assured on Monday that the Minister of Economy, Paulo Guedes, will remain in the government in the event of re-election, but admitted that there is pressure for the replacement of the minister.

“For sure yes. It depends on him. I see him sometimes tired, which is natural, he is a minister who in the past was very changeable in the Economy”, said the president in an interview with Terraviva channel.

“Sometimes some want me to change him to settle certain matters. I prefer to talk to him and in that mutual loyalty we have, change a few things and proceed along that line.”

At the same time, Bolsonaro put a solution to the issue of high fuel prices in the finance minister’s account. Guedes has been pointed out by the political wing of the government, worried about re-election, as the main person responsible today for not having been able to implement a measure that would prevent the high.

Concerned about the spending cap, Guedes is against the implementation of a fund that subsidizes fuel prices.

“Paulo Guedes, I hope that in the coming days, he will resolve the fuel issue regarding taxes in Brazil. He has already shown himself in favor of this, has been working towards it and I hope that in the coming days, this very week, we will have good news on fuel prices in Brazil,” Bolsonaro said.

new ministries

During the interview, Bolsonaro again promised the creation of new ministries in case he is re-elected in October. According to him, the creation of the Ministry of Public Security is being analyzed again, in a division of the Ministry of Justice, and the Ministry of Industry and Commerce.

This second, which was incorporated into the Economy at the request of Guedes, is a demand from the center, which wants to occupy the portfolio again.

Bolsonaro also said that he analyzes the recreation of the Ministry of Fisheries, which existed during the mandate of Dilma Rousseff (PT).

The president argued that, given the territorial extension of Brazil, the creation of more ministries would help to better manage the country.

He stated, at the same time, that, as it is an electoral year and because the recreation of the portfolios requires the creation of positions, it would not be possible to do this even in this term, only in the case of reelection.