Petrobras to pay $853 million to US

Brazil’s state-controlled oil giant Petrobras signed agreements for the payment of $853 million to US authorities as penalty for the wrongdoing committed by former directors and executives in the US stock market from 2003 through 2012. The deal to be signed today (Sep. 27) with the US Department of Justice and the Securities and Exchange Commission marks the end of the probes against Petrobras.

Under the deal, Petrobras reported, the US authorities agreed to keep $682.6 million—80 percent of the total—in Brazil. In compliance with a ruling by Brazilian prosecutors, these funds will be put towards a fund created to finance social programs in Brazil and anti-corruption measures. Part of this sum will also be available to compensate Brazilian investors.

The firm is charged with violating US rules through the manipulation of accounting records and financial statements in order to facilitate the payment of kickbacks to politicians and political parties in Brazil. Petrobras also agreed to sign a term acknowledging the deliberate wrongdoing committed by executives in the company under a corruption scheme brought to light by Operation Car Wash.

*This article was revised on Sep. 28 for further clarification.