Development of external economic relations between Brazil and Russia (on the example of the aerospace and energy industries)

Аuthors

Shevtsova A. S.

Plekhanov Russian University of Economics, PRUE, 36, Stremyanny per., Moscow, 117997, Russia

e-mail: shvedka90@mail.ru

Abstract

Since 1994 diplomatic and economic relations between Russia and Brazil differ in the positive dynamics of political contacts on all levels. October 2013 marks 185 years since the establishment of the Russian-Brazilian diplomatic relations.

In a few last years and especially after introduction of sanctions directed to level deceleration of Russian economic integration into international arena, the relation between Russia and Brazil develops with the high rates. Most changes take place in the field of external economic collaboration, especially in the field of science (in particular, space programs), energy and finances.

In opinion of Goldman Sachs, to the 2050 the summary economies of BRICS countries will exceed the total size of economies of the richest countries of the World (The Group of Seven).

The set dialogue determines external economic partnership between Brazil and Russia. A primary goal is to diversify bilateral trade with the aim to lead its volume up to 10-11 milliard dollars in 2020.

At the present time, Brazil continues the development of operational satellites SCD-1 and SCD-2, which were first launched in 1993 and in 1998 year respectively.

An important area of cooperation is a joint modernization of the Brazilian VLS-1 rocket (so-called program “Southern Cross”), which is the Brazilian entry ticket to the club of space-rocket countries.

However, nowadays in Brazil only the use of space developments in the field of telecommunication brings the financial return.

Another area of cooperation between Brazil and Russia is the nuclear power industry. Today, Brazil has the need for energy.

In the framework of the VII meeting of the Russian-Brazilian high-level commission on September 6, 2015 a Memorandum of Understanding between the State Corporation “Rosatom” and Nuclebras Equipamentos Pesados SA (NUCLEP), the leading company of the nuclear industry in Brazil, providing services in the field of heavy engineering, has been signed.

New opportunities for enhanced cooperation between Russia and Brazil are opened through the Business Council of BRICS and there are already examples of successful cooperation projects in the energy sector, in particular, the localization of production of power equipment in Brazil.

The growing interest in renewable energy sources associated with the steady growth of energy consumption, as well as increased emissions of greenhouse gases into the atmosphere.

The main task of Russia is search of ways to increase the commerce and, as consequence, expansions of investment cooperation. The level of investments has noticeably grown for the last some years, possible risks here became significantly less, but also the time of reception of the first profit has significantly increased. It is connected with the enough limited home market of consumption in Brazil, where most part of the population lives below a level of poverty and only buys products of the first indispensability. Thus, manufacture orientation to the export trade is more preferentially.

Conclusions

Cooperation between Brazil and Russia develops fast paces. The important directions of cooperation between two countries are such high technology branches, as space branch and atomic engineering. During cooperation Brazil aspires to take the experience, saved up in Russia, for progress of own technologies. Also, the interoperability between two states in area of a science and formation, tourism and other branches actively develops. The Fundamental importance for both countries has regional cooperation.

Keywords:

Brazils foreign economic cooperation, the space industry, the Brazilian Space Agency, Alcantar, satellites VLS, renewable energy sources

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