Sarko, Back in Brazil, Makes Jet Deal

Nicolas Sarkozy is back in Brazil, just in time to celebrate National Day in Brasilia. O Globo has a slide show of the celebration.

Sarko has a lot to celebrate. According to Bloomberg,

Brazil’s Senate last week approved a bank loan of 6.1 billion Euros ($3.3 billion) that the government will use to build five submarines and 50 helicopters in partnership with France.

The French will also be building a nuclear submarine for Brazil in the future. The total of that deal is estimated at $10 billion.

Additionally, the two countries signed a nuclear deal that would allow France's partially state-owned electric and gas utility, GDF Suez, to provide assistance to Electronuclear and Eletrobras to develop Brazil's nuclear power industry.

O Globo confirms today that France will be selling Brazil 36 Rafale fighter jets, which would be built by French aerospace company Dassault, for $2 billion. In exchange, France agreed to buy a dozen KC-390 military cargo planes, made by Brazil's Embraer. While Boeing's F/A-18E/F Super Hornet and Saab's Gripen combat jets were also shortlisted for purchase, France, in addition to having agreed to the KC-390s purchase has also agreed to technology transfer and building the jets in Brazil.

[Update:

A commenter at my blog contrasts the O Globo article with a report at Zero Hora which refers to the Rafale agreement as 'the intent of the Brazilian government to enter in negotiations to acquire" the jets.]

According to O Globo, as of 2020 Brazil will have the most powerful navy in Latin America, at the same time it develops its offshore oil resources.

As you may recall, Sarkozy has been cultivating business with Brazil for some time now. It's apparently starting to pay off.