Petrobras, Brazil’s state-held oil firm announced that it is restarting trades with the world’s leading oil trading houses Trafigura, Vitol, and Glencore after almost 2 years of suspension amidst a bribery inquiry in between the oil trading pioneers.

Brazilian authorities started an investigation into Glencore, Trafigura, and Vitol in December 2018 over suspected bribery in which the traders had paid bribes of around US$31 million to Petrobras insiders, employees, and traders in exchange for oil deals.  

Immediately after the investigation was announced, Petrobras stated that it was suspending fuel and oil trade with the 3 major traders.

As part of the Operation Car Wash inquiry, the major scandal that shuddered Petrobras over the past half a decade, Swiss authorities investigated offices of Trafigura and Vitol in Geneva in November 2019, as an inquiry part which claims that the top management of the oil traders was conscious about the scheme. 

 The oil trading enterprise confirmed that they have “zero tolerance” toward bribery and corruption and are collaborating with authorities. 

Almost after two years of Petrobras suspending fuel and oil trade with the world’s three biggest largest commodity traders, the Brazilian company is now resuming agreements with Glencore, Trafigura, and Vitol after enhancing its compliance procedures, introducing ‘know-your-customer’ due diligence, and getting integrity checks done on its traders, Petrobras confirmed.

Petrobras stated that following the temporary suspension period with the cited companies, Petrobras has resumed the business after approving and improving a series of specific measures that would bring more security in the commercial relationship. According to the reports, the suspension of trade with the oil traders was lifted nearly three months ago.

The Operation Car Wash was the biggest scandal in the history of Brazil that led to accusation of President Dilma Rousseff and prison sentences for business executives with high ranks from numerous industries.

Source: https://oilprice.com/Latest-Energy-News/World-News/Brazils-Petrobras-Restarts-Trade-With-Major-Oil-Traders.html