Regulatory News

Less than 24 hours after Congress overturned President Dilma Rousseff’s vetoes of the law amending the distribution of oil royalties, lawmakers from the states of Rio de Janeiro and Espirito Santo - the two largest producers and most harmed by the decision of the representatives and senators - have filed a lawsuit in the Supreme Court (STF) to annul the vote.

The lawmakers want to prevent the new formula for division of royalties from reaches existing contracts. The President had vetoed the new distribution, but Congress disagreed and overturned the decision.

The more affected state, Rio de Janeiro, may lose up to R$75 billion (US$38 billion) in royalties by 2020 - R$3 billion (US$1.5 billion) this year alone if the court does not suspend the effects of the new law.

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