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Petrobras pays a USD853 mln fine in the US and ends the Lava Jato case settlement

October 07/2021

MOSCOW (MRC) -- Petrobras has fulfilled the commitments it made in 2018 to the US and Brazilian governments that resolved an investigation into the Lava Jato corruption scandal, said the company.

As reported in a statement this Monday, Petrobras has fully completed its obligations under the agreement, for which it also collaborated with the Securities Market Commission (SEC).
In total, the Brazilian company has disbursed up to USD 853.2 million during the period of collaboration with the US authorities. Of this amount, 10% has been allocated to criminal fines, another 10% to civil fines for the SEC and another 80% to the Brazilian authorities.

The oil company has also pledged to continue improving its internal controls and compliance program, and has agreed to cooperate with US agencies, including by submitting annual reports to the Justice Department.

After finalizing the collaboration, the Department of Justice has recognized that Petrobras was the victim of a covert scheme of embezzlement by the Brazilian public authorities in the Lava Jato operation.

With the conclusion of the obligations provided for in the agreement, Petrobras closes an important stage in its recovery path. We have finally turned the page and the end of the agreement with the Department of Justice shows that we are living in new times, with our compliance systems being strengthened day by day , underlined the Director of Governance and Compliance, Salvador Dahan.

Under the deal, the US acknowledged that Petrobras was a victim of the Lava Jato scandal.

The scandal, called Lava Jato, or Car Wash, was a pay-to-play bribery scheme. Under it, Petrobras awarded inflated contracts. The excess money went to individual executives and politicians.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
Author:Anna Larionova
Tags:crude oil, PP, PE, neftegaz, petrochemistry, Petrobras.
Category:General News
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