Brazil is Russia's major trading partner in Latin America and one of the leading suppliers of agricultural products, certain kinds of raw materials and consumption goods. According to the Brazil Ministry of Economic Development, Industry and Foreign Trade, in 2011 the volume of trade between the two countries amounted to $7.2 billion ($6.2 billion, according to the Federal Customs Service), Brazil's export to Russia amounted to $4.2 billion, while import was $3 billion.
For eleven months in 2012, the volume of foreign trade between Russia and Brazil amounted to $5.1 billion, which is 17.7% less than for the same period in 2011. The volume of trade decreased due to a 26.6% decline in Russian import from Brazil, which reached $3.1 billion. In 2012, the purchase of cane raw sugar, soya and pork was reduced by 87.9%, 47% and 13.9% respectively, as compared to the same period in 2011. From 2.1 million tonnes for $1.52 billion to 314,000 tonnes for $183.5 million for cane raw sugar, from 302,400 tonnes for 170.3 million to 125,100 tonnes for $90.3 million for soya and from 131,300 tonnes for $423.9 million to 113,800 tonnes for $365.1 million for pork.
Russian export increased by 12.5% and reached $1.4 billion. The growth was conditioned by such exported goods as potash fertilisers (1.8 time increase from 243,500 tonnes for $179.5 million for the 11 months in 2011 to 454,300 tonnes for $330 million), sulphur (1.7 time increase from 270,500 tonnes for $44.5 million for the 11 months in 2011 to 482,900 tonnes for $75.2 million) and nitrogen fertilisers (1.1 time increase from 954,900 tonnes for $775.9 million for the 11 months in 2011 to 1,016,000 tonnes for $844.4 million.)
Inspections at the Brazilian enterprises revealed weak control over veterinary and sanitary norms as determined by Customs Union law and Russian legislation, which resulted in temporary restrictions being imposed by the Rosselkhoznadzor from 15 June 2011 on the import of livestock products from 89 Brazilian meat processing factories in three states. As of November 2012, according to monitoring results, restrictions on the import of livestock products to Russia were introduced at 22 Brazilian enterprises.
The countries cooperate in space exploration. Russian and Brazilian specialists continue their work on modernising the VLS-1 missile carrier. Regarding the participation of Brazil in the Russian GLONASS system, the University of Brasilia confirmed their readiness to install the GLONASS station for differential correction and monitoring on its territory. It is soon planned to start the installation of functional GLONASS additions in Brazil.
The energy sector is the priority of mutual economic projects. Silovye Mashiny (Power Machines) Company provided equipment for five Brazilian hydro power plants, signed contracts for $55 million to provide turbines and generators to Brazilian hydro plants and is currently installing two generators at the Brazilian Passo Sao Joao Hydroelectric Power Plant.
Energomashexport Corporation installed and launched two generators at Nova Aurora and two generators at Goyandira hydro power plants (the contract was for $1.8 million.) In 2010, Silovye Mashiny Company opened its office in Sao Paulo, which was a step forward in developing trade and economic relations between the two countries.
The leading oil and gas companies in Russia and Brazil are developing their cooperation. In 2007, Russian Gazprom and Stroytransgaz signed memorandums of mutual understanding with Brazilian Petrobras, confirming their readiness for a strategic partnership. In November 2011, Gazprom opened its office in Rio de Janeiro, which helps develop links in the hydrocarbon field between Russia and Brazil and in general between Russia and Latin America.
The mutual working group on interbank and financial cooperation started its work and held its first meeting in Brasilia in August 2011, where it considered possible schemes of using national currencies in mutual trade. Due to the world's economic crisis, Brazilian businessmen became less active on the foreign markets, including in Russia. Currently, the only active investment project involving Brazilian capital is Marr Russia Ltd, which produces hamburgers for McDonald's. It was launched in February 2010 in Odintsovo, together with Italian Cremonini and Brazilian JBS Friboi.
Russian investment has recently increased in Brazil. In May 2011, Severstal signed an agreement with the Brazilian SPG Mineracao mining company, which has licenses for iron-ore plots in the northern state of Amapa, to purchase 25% of its shares for $49 million. The estimated production volume amounts to 10-20 million tonnes of iron ore concentrate. In March 2012, Brazil's National Agency for Oil, Natural Gas and Biofuels approved the deal between TNK-BP and HRT O&G on acquiring 45% stake in developing Solimoes basin. Bilateral cooperation is inspired by establishing a direct flight connection between Brazil and Russia. Russian Transaero is analysing the economic aspects of resuming weekly direct flights between Moscow and Rio de Janeiro, having introduced them between 3 January and 21 March 2011.