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Brazil’s Petrobras hikes prices, ignoring Bolsonaro

AFP

Brazilian state-run oil company Petrobras announced hefty increases in gasoline and diesel prices Thursday in response to the Ukraine crisis, ignoring President Jair Bolsonaro’s criticism of what he calls excessive prices.

Petrobras said it would raise the price of gasoline from its refineries by 18.8 percent and diesel by 24.9 percent from Friday, citing the “worldwide surge in the prices of oil and oil derivatives as a result of the war between Russia and Ukraine.”

The company said the move was in line with increases by other fuel suppliers, and emphasized that it had not raised prices in nearly two months.

But the move will likely irk the far-right president, who has been trying to rein in surging fuel prices and inflation more broadly, phenomena which are hurting his popularity as he gears up to seek reelection in October.

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Bolsonaro, who regularly criticizes Petrobras for high prices, said Monday the company’s policy of parity with international prices “cannot continue.”

Petrobras shares dove more than seven percent following the comment.

That echoed a stock plunge of more than 20 percent just over a year ago, when Bolsonaro changed Petrobras’s chief executive after saying the company should not be constantly “surprising people” with price increases.

Bolsonaro is pushing for Congress to pass legislation to bring fuel prices down, though experts say the short-term impact would be minimal.

He is also reportedly looking at decreeing emergency subsidies to lower prices.

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Both measures are unpopular with fiscal conservatives.

Surging prices in Brazil, where the annual inflation rate stands at 10.38 percent, are a weak spot for Bolsonaro as he eyes a tough reelection battle in seven months, likely against leftist ex-president Luiz Inacio Lula da Silva.

The international oil market has been rocked by volatility since Russia invaded Ukraine two weeks ago.

The Brent crude price hit a peak of $139 a barrel Monday, a 14-year high, before falling to around $116 Thursday.

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International

Uruguay clears two ex-consuls of involvement in russian passport fraud case

The Public Prosecutor’s Office of Uruguay announced on Tuesday that it has requested the dismissal of charges against two former Uruguayan consuls in Russia accused of participating in a scheme involving the issuance of false passports, a case linked to the former head of security for President Luis Lacalle Pou.

The scheme, which involved providing Russian citizens with falsified documents to obtain Uruguayan passports, relates to a criminal organization that has been operating since 2015, according to investigations.

Judicial documents indicate that the diplomat identified by the initials S.D.C.M., who served as Uruguayan consul in Moscow from 2013 to 2018, was charged in late November 2022 with fraud and “14 crimes of identity assumption.”

The other consul, identified as G.L.P.M., was indicted in March 2023 for committing “repeated crimes of identity assumption.” He had served in Russia from February 2019 until February 2022.

“However, the Public Prosecutor’s Office continued investigating and dismissed the involvement of both consuls in the scheme,” the office said in a statement on Tuesday.

Prosecutor Sabrina Flores argued that “both officials did not speak Russian,” and that “from the forensic analysis of their cell phones, there is no evidence to hold them accountable for the investigated events.”

Additionally, the statement said that “on several occasions when passports with falsified documents were processed,” the consuls “were not in the country” or were “on leave.” It was also discovered that their signatures had been “forged.”

In the context of this case, the former head of security for Lacalle Pou, Alejandro Astesiano, was sentenced in February 2023 to four and a half years in prison for conspiracy and influence peddling, among other crimes, following a plea deal.

For good behavior, in May of this year, he was granted early release on probation under police supervision, a decision that the Public Prosecutor’s Office did not appeal.

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International

Migrants gather in caravans for protection on dangerous journey to the U.S.

Migrants often gather in groups in southern Mexico to protect themselves from criminal organizations. However, they rarely get close to the border between Mexico and the United States.

When U.S. President-elect Donald Trump promised to impose new 25% tariffs on all products coming to the U.S. from Canada and Mexico, he stated that these tariffs would remain until drugs and people crossing the U.S. border were stopped.

Trump specifically mentioned a caravan of migrants heading to the United States from southern Mexico. This was the latest example of how Trump uses such group mobilizations to reinforce his statements about the border, although it is unusual for these groups to make it very far.

Groups of thousands of migrants usually gather in southern Mexico, near its border with Guatemala, which is more than 1,600 kilometers from the United States. The main reason is the power and safety that traveling in large groups provides.

While waiting in Tapachula, a city in southern Mexico, for humanitarian visas to travel through the country— a process that can often take months—migrants unite to prepare for their journey north.

Crossing Mexico can be a treacherous endeavor, especially for the poorest migrants, as they are vulnerable to kidnapping, extortion, or violence from either criminal groups or corrupt Mexican officials. Caravans help reduce the risk and avoid the high cost of hiring a smuggler to help them reach the U.S. border.

Many people, often from other parts of the Americas and increasingly from Asia and Africa, arrive in southern Mexico, sometimes after traveling hundreds of kilometers through jungles and multiple borders before reaching Mexico.

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International

Trump’s social media announcement triggers panic with tariffs on Mexico and Canada

With just two messages on social media announcing devastating tariffs on Mexico, Canada, and China, Donald Trump caused a sharp drop in the stock prices of car manufacturers, triggered a roar from allies, and sent tremors through foreign ministries.

This style of communication, characteristic of the wealthy Republican, foretells a new term filled with shocking announcements on social media at any hour of the day and on any number of topics.

Late Monday night, the first message was posted on his Truth Social network.

The elected president announced he would impose 25% tariffs on “ALL products” from Canada and Mexico starting on the first day of his presidency.

It made no difference that both countries were tied to a free trade agreement with the United States.

“This tariff will remain in place until drugs, especially fentanyl, and all illegal migrants stop this invasion of our country,” Trump wrote, causing panic from Ottawa to Mexico City.

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