Regulatory News

Congress has given up this year on trying to analyze the partial veto of the redistribution project of oil royalties by President Dilma Rousseff. That's because Minister Luiz Fux of the Federal Supreme Court (STF) ruled that lawmakers would have to respect chronological order, and the 3,060 vetoes already ahead of it and awaiting an opinion. A group of parliamentarians from non-oil-producing states tried to maneuver and accelerate the vote, but the measure was barred by parliamentarians from oil-producing states.

The president vetoed the articles that altered the distribution of royalties in areas already tendered, a decision that benefits producing states, especially Rio de Janeiro, Espirito Santo and Sao Paulo. Governors of these states have already announced that if Congress can override the veto in 2013, they will file a process with the Supreme Court challenging the constitutionality.

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