According to the Spanish EFE news agency, the Brazilian government will increase bilateral trade with Iran, which had dropped by 30 percent in past years due of sanctions.
Based on official statistics, Brazil trade with Iran last year stood at 1.67 billion dollars, thanks mainly to the growing export of agricultural items.
In a directive issued on Thursday, the Brazilian President Dilma Rousseff removed the sanctions her country exercised against Iran based on the United Nations Security Council decisions.
Brazil initially confronted the sanctions set by the UNSC against iran but was later forced to abide by it.
Tehran and Brasilia are in negotiations about Iran’s investment and presence in the South American country’s oil market, a source said.
A Brazilian government source told Reuters on Thursday that Iran is interested in exporting oil to Brazil, processing that crude at refineries in Brazil's northeastern region and then selling it in the Brazilian market.
'For this subject to be considered embryonic it will still need to evolve a lot,' said the source, who preferred anonymity.
The source added that the Islamic Republic has also expressed willingness to construct the Premium I and Premium II refineries in Brazil's northeastern states of Maranhao and Ceara, adding the refineries are designed to produce low-sulfur fuels.
Brazil is currently the world’s seventh largest economy, which is a member of the BRICS group of emerging powers that also include Russia, India, China, and South Africa.
Brasilia is Tehran’s most important economic partner in Latin America and the volume of bilateral trade amounts to about USD 1.6 billion a year, Tasnim news agency said.