International
Board of Brazil’s Petrobras elects Lula ally as new president
January 26 | By AFP |
The board of directors of Petrobras on Thursday appointed Jean Paul Prates, an ally of President Luiz Inacio Lula da Silva, as head of the state oil company.
Prates, a 54-year-old lawyer and economist, was previously a senator in northeastern Rio Grande do Norte state and a member of Lula’s Workers’ Party.
Lula described Prates as a specialist in the energy sector when nominating him for the job on Twitter last month.
In a statement confirming the appointment, the Petrobras board said Prates had been chosen unanimously.
Prates has 30 years experience in the oil, natural gas, biofuels and renewable energy sectors.
“I have been given the mission of managing Petrobras in the coming years,” Prates said.
He added that he was “honored to lead a company that is the heritage of all Brazilians.”
Petrobras is the flagship of Brazilian industry. It is the largest company in the South American country but was at the center of the wide-ranging “Operation Car Wash” corruption scandal.
As part of the graft investigation, Lula was himself convicted of accepting a bribe and spent 18 months in jail before a judge annulled his conviction.
Petrobras went through some turbulent years during the presidency of Lula’s predecessor, Jair Bolsonaro.
The company went through four different CEOs during that period due major disagreements over Petrobras’s oil pricing policies.
Bolsonaro even went so far as to accuse Petrobras of theft over its price hikes.
The company sets prices based on the standard international rate for a barrel of oil.
The position of Petrobras chief executive is one that comes with great exposure to political pressure.
In its 68 years of existence, the company has had 39 CEOs, meaning they have lasted on average less than two years.
The markets have expressed fears that Prates could change the company’s pricing policies and that under Lula’s socialist government there will be greater interference in the running of state companies.
The Brazilian state owns 50.26 percent of Petrobras’s capital and Lula has ruled out privatizing the company.
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International
China Accuses U.S. AI Firms of Using Chinese Models to Train Artificial Intelligence
China on Monday accused U.S. artificial intelligence companies of using Chinese AI models to train their own systems, escalating tensions in the technological rivalry between the world’s two largest economies.
In a statement, China’s Ministry of Commerce said it has evidence that “many U.S. artificial intelligence companies have distilled Chinese models during their research, development and training processes.”
Model distillation is a machine learning technique that transfers knowledge from a larger, more advanced model to a smaller and faster one, allowing it to perform efficiently while requiring fewer computing resources. The approach is widely used across the AI industry.
U.S. officials have previously argued that Chinese firms employ distillation on a large scale to unlawfully replicate proprietary American AI systems. Beijing dismissed those allegations, calling them unfounded.
According to the Chinese ministry, Washington’s accusations “lack both factual and legal basis, apply double standards in practice, and represent a typical act of AI hegemony.”
“China will take all necessary measures to firmly safeguard its legitimate rights and interests,” the ministry added.
The statement comes days after a senior White House official accused Chinese startup Moonshot AI of secretly copying Anthropic’s most advanced AI model to develop its Kimi K3 system.
Moonshot’s latest model drew significant attention across the U.S. technology sector following its release, reigniting debate over China’s growing competitiveness in artificial intelligence.
Last week, U.S. Treasury Secretary Scott Bessent warned that Washington could impose sanctions on China as the administration considers restricting or banning foreign-developed open-source AI models, many of which are built using model distillation techniques.
International
Costa Rica Seeks to Expand Extradition Law to Target Organized Crime
Costa Rican President Laura Fernández announced that her administration will submit a constitutional reform bill to Congress on August 3 aimed at expanding the legal grounds for extraditing Costa Rican nationals accused of serious crimes.
Under current legislation, Costa Rican citizens can only be extradited to face prosecution abroad for international drug trafficking and terrorism. The proposed reform would broaden that list to include a wider range of organized crime offenses.
Speaking before the Legislative Assembly while presenting a broader package of public security initiatives, Fernández said the proposal seeks to strengthen the country’s fight against transnational criminal organizations.
“We are going to expand the grounds for extradition to include serious crimes,” the president said.
The initiative would allow the extradition of Costa Rican nationals accused of financing drug trafficking or terrorism, money laundering, human trafficking, migrant smuggling, arms and organ trafficking, contract killings, organized crime-related homicides, cybercrime and cyberterrorism.
“We will not stop in our national crusade against organized crime or in our relentless war against drug trafficking,” Fernández said.
A political ally of U.S. President Donald Trump, Fernández took office in May after campaigning on a promise to adopt a tougher stance against organized crime, which she has linked to the recent rise in violence in Costa Rica, a country long regarded as one of the safest in Latin America.
Costa Rica currently permits the extradition of its own citizens only for international drug trafficking and terrorism, following a 2025 constitutional amendment promoted by former President Rodrigo Chaves, who now serves as the country’s Minister of the Presidency and Finance.
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