Brazil: Bolsonaro’s candidate to head Petrobras rejects the post due to “lack of time”

RIO DE JANEIRO, BRAZIL – Brazilian economist Adriano Pires, proposed by the government of Jair Bolsonaro to preside over Petrobras, desisted on Monday from succeeding Joaquim Silva e Luna, dismissed after applying several increases in fuel prices, as confirmed by the Ministry of Mines and Energy.

Pires’ decision was made official to the Executive through a letter sent to the Minister of Mines and Energy, Bento Albuquerque, in which he communicated his resignation.

The economist alleged in the letter, published Monday night by the ministry, that the impossibility of quickly disengaging from his private activity as an energy consultant would prevent him from taking charge of the oil company, so he declined the invitation.

“It became clear to me that I could not reconcile my work as a consultant with the exercise of the presidency of Petrobras. I started the procedures to disassociate myself. However, throughout the process, I perceived that, unfortunately, I do not have the conditions to do it in such a short time,” said Pires, who thanked Albuquerque and President Bolsonaro.

With more than three decades of experience in the energy sector, Pires was proposed by the Ministry of Mines and Energy as a candidate to replace Silva e Luna when his dismissal was confirmed last Monday.

The appointment still had to be approved by Petrobras’ board of directors on April 13 at the general shareholders’ meeting. The Public Prosecutor’s Office and the Federal Court of Auditors, which audits public agencies and entities, had warned last Friday of a possible “conflict of interest”.

Specifically, they objected that Pires founded and currently heads the Brazilian Infrastructure Center, “which has provided services to the main oil, gas, and energy multinationals for more than 20 years”.

Pires’ step aside was the second setback for the government in recent hours at Petrobras after Rodolfo Landim, elected to chair the company’s board of directors, also stepped aside on Sunday.

The businessman and engineer, who worked at the state-owned oil company for more than two decades and chairs Flamengo, expressed his desire to devote all his time to the “further strengthening” of Brazil’s most famous soccer club.

Bolsonaro is keeping the company under pressure, which controls the Brazilian market and implemented constant adjustments following the international price of crude oil, as dictated by its pricing policy.

It has boosted inflation, which is very detrimental to the president’s popularity, who will seek reelection in October. According to official data, as of February, fuel prices had risen 33 percent in 12 months.

The situation worsened after the escalation of oil prices due to the Russian military operation in Ukraine: in March, Petrobras increased the price of gasoline by 18.8% and diesel by 24.9%.

Silva e Luna himself, an Army reserve general, was appointed in February last year because Bolsonaro disagreed with price increases during the management of economist Roberto Castello Branco. Petrobras shares closed the day in the red, with a loss of 0.94 percent on the São Paulo Stock Exchange.

With information from AFP