Petrobras new chief sworn in as market worries Brazil's government will have heavier hand

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Jair Bolsonaro,World News

The head of Brazil’s state-run oil giant Petrobras, Magda Chambriard, has been sworn in as market concerns of increased government intervention in the company mount.

Magda Chambriard, the new president of the state-run oil company Petrobras, waves during her inauguration ceremony, in Rio de Janeiro, Brazil, Wednesday, June 19, 2024. – The head of Brazil’s state-run oil giant Petrobras, Magda Chambriard, was sworn in Wednesday amid market concerns of increased government intervention in the company.

that began a decade ago. The yearslong probe discovered billions of dollars in kickbacks related to construction contracts that Petrobras awarded. Investigators found illicit funds filled party coffers and lined politicians’ pockets, at a time when Lula’s Workers’ Party was in power.although his conviction was later annulled“With the false argument of fighting corruption, Operation Car Wash was actually aimed at dismantling and privatizing Petrobras,” he said.

Brazil’s government has a controlling stake in Petrobras and some Brazilian politicians see the company as a means to leverage national development. That represents a clash of interests with minority shareholders who want the company to focus on maximizing profits. Prates’ departure in the aftermath caused the company’s shares to fall a further 9% on the day of the announcement, before paring losses.

 

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Petrobras new chief sworn in as market worries Brazil's government will have heavier handThe head of Brazil’s state-run oil giant Petrobras, Magda Chambriard, has been sworn in as market concerns of increased government intervention in the company mount.
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