BRAZILIAN DELEGATION VISITS MOSCOW…

A large delegation of Brazilian government and business leaders paid an unusually high-profile visit to Moscow this week, one that appeared to highlight rapidly improving ties between the two countries and the establishment of what both sides suggested could eventually evolve into a Russian-Brazilian “strategic partnership.” Brazilian President Fernando Henrique Cardoso led the visiting delegation, which included what the Financial Times described as “one of the largest contingents of businessmen to be included on an official state visit.” And, indeed, trade issues appeared to dominate the talks in Moscow as the two sides pledged to give a further boost to already rapidly rising levels of bilateral trade. This is especially important for Brazil, which is trying to make up for a loss of revenues in trade with troubled Argentina. In part because of this situation, Russia emerged as Brazil’s fastest growing export market in 2001, and Cardoso’s visit to the region, which also included a stop in Kyiv, was clearly aimed at building on this success.

Russian and Brazilian officials made it clear during this week’s talks that they have set the transformation of bilateral trade from a primarily raw materials and agricultural base to one more heavily weighted with industrial and high tech goods as a major goal. The Brazilian delegation was said to be especially interested in developing cooperation in the aerospace sector, and a memorandum of understanding was reportedly signed that could ultimately provide for the use by Russia’s space program of Brazil’s Alcantara launch pad. In addition, the two sides held talks on cooperation in nuclear energy. This week’s discussions followed a Russian-Brazilian agreement signed last month on joint research into the development of new types of nuclear fuel and other projects in this area. Brazil is reportedly looking again at an earlier plan to build a third nuclear reactor, and Russia’s atomic energy establishment, which has promoted its technology aggressively on the world market, is undoubtedly anxious to grab a piece of what could be a US$1.7 billion project.

…DEEPEN MILITARY TIES…