: :inin Kyiv (EET)

Brazil may sell stake in Petrobras oil and gas giant amid corruption scandal

Brazil`s government may agree on the sale of its share in Brazilian oil and gas giant Petrobras, which since 2014 has been engulfed in a corruption scandal, Russian news agency Prime reported referring to sources that are familiar with the matter.
It is reported that Brazil`s government is considering selling stakes in state-controlled assets – including its postal company as well as holdings in transport, power and insurance firms – in a bid to raise capital and streamline the public sector.
The list of companies subject to partial privatization has not been yet finalized, Prime reported. However, the government is said to be mulling the sale of the controlling stake in Petrobras unit and Eletrobras Furnas company. Brazil may organize investor meetings for state asset sales in New York, London and other financial capitals in mid-July, according to the report.
Earlier, Brazilian media reported the government was considering partial sales of its stakes in Correios, Brazil`s mail carrier, and the Casa de Moeda, the national mint. It may also revive efforts to sell stakes in the insurance unit of Caixa Economica Federal. Other privatizations being considered, according to the report, include the partial sale of Infraero, the national airport operator, electricity holdings in more than 200 small companies controlled by Eletrobras, the state-run power company.
In 2014 Petrobras company was put at the center of what is thought to be one of the biggest corruption scandals in Brazil`s history. A number of Petrobras directors were accused of taking bribes from construction companies and funneling funds to parties of the ruling coalition. According to the Brazilian Federal Police, the group under investigation moved more than $3.9 billion in what police describe as ”atypical” financial transactions.


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