Brazil opposes sanctions and Russia’s expulsion from IMF, says Economy Minister

RIO DE JANEIRO, BRAZIL – Brazil is against the war between Russia and Ukraine and is against the economic sanctions caused by the conflict, said Tuesday (19) the Minister of Economy Paulo Guedes, stressing that the country is also against the exclusion of the Russians from the International Monetary Fund (IMF). In addition, the minister said that “the IMF should revise the growth forecast for Brazil upward.”

Speaking at an event hosted by the Center for Strategic and International Studies (CSIS) during a trip to the United States, Guedes said Brazil favors building bridges of dialogue to convince Russia to end the conflict and end economic sanctions.

The minister reasoned that the Brazilian Constitution does not allow the country to support sanctions that have not been adopted by the United Nations (UN).

Asked if Brazil was a way for Russia to circumvent sanctions, Guedes replied, “I wouldn’t put it that way,” before pointing out that while Brazil is part of the Brics (a group with Russia, India, China, and South Africa), it is not a member of the Organization for Economic Cooperation and Development (OECD).

“We are against the war and the economic consequences of the war, namely the sanctions,” he said.

At the event, Guedes said that President Jair Bolsonaro’s (PL) visit to Russian President Vladimir Putin a few days before the war began was “ill-timed” but pointed out that Brazil had voted to condemn Russia at UN meetings. “Brazil has spoken out against the war,” he said.

According to Guedes, under IMF rules, Russia cannot be excluded. The only reason I should maintain the bridge (with Russia) is to convince them to a ceasefire. If you expel them, you promote economic warfare,” he said.

Last week, Guedes received a letter from Russian Finance Minister Anton Siluanov asking the Brazilian government for support from the IMF, the World Bank, and the G20 after Western countries sanctioned the European country in light of the conflict with Ukraine.

At the seminar, the minister stated that it was time for Brazil to be accepted as a member of the OECD and advocated formalizing the agreement between the European Union and Mercosur. For him, Brazil is part of the solution to the world’s energy and food needs.

“If we do not do something now, the agreement with the European Union and joining the OECD, we will be pushed in another direction, have other options, and sell more to the Middle East, Southeast Asia, and China,” he said.

Guedes also reiterated that the central banks of the United States and Europe are behind the yield curve and that Brazil has already moved to cope with the rise in prices. In his opinion, Brazilian inflation will fall faster than in advanced economies.

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