CVM acquits the Federal Government for Petrobras’ losses in sales to the electricity industry

The Board of the Brazilian Securities and Exchange Commission has unanimously decided to acquit the Federal Government for the losses incurred by Petrobras in the sale of fuel oil to Amazonas Energia. The transactions led to outstanding balances of up to BRL 15 billion funded by Petrobras, to the recognition of losses and to the signing of refinancing agreements at present values significantly below the amount due.
According to the rapporteur officer Henrique Machado, who was unanimously supported by the Board, the term of accusation “was not able to gather sufficiently qualified elements to prove the Government’s responsibility.” CVM’s Chair Leonardo Pereira stated that, although it is evident that the nonpayment by Amazonas led to losses to Petrobras during the supply period, it is not clear that such default was the result of an intentional omission by the Federal Government neither by intentional or coordinated acts of its representatives.