RIO DE JANEIRO, Nov 7 (Reuters) - Russian diesel is no longer competitive in Brazil, said the chief executive of state-run oil company Petrobras (PETR4.SA) on Tuesday, when asked about a drop in imports of the fuel by local firms.

"Russian diesel was a sanctioned diesel, it was cheaper," CEO Jean Paul Prates said at an event in Rio de Janeiro.

Western nations sanctioned Russian fuel after the country invaded Ukraine last year, initially causing prices to drop for other buyers.

"But from a certain point on, prices became the same and it was no longer worth importing," Prates explained.

Russian diesel, which accounted for nearly three-quarters of all the diesel imported by Brazil in August, represented only 42.1% in October, according to StoneX analyst Bruno Cordeiro.

In the first 10 months of the year, Brazil imported 11.72 billion liters of diesel, 15.7% down from a year earlier, a drop StoneX attributed to higher domestic production and a higher percentage of biodiesel required in the fuel.

This growth in domestic diesel production was driven by Petrobras, which reported record output and sales of its S-10 diesel in the third quarter.

The increased domestic market share shows Petrobras is competitive and can adapt as it is "the backbone of national supply," Prates added.

https://www.reuters.com/markets/commodities/russian-diesel-no-longer-competitive-brazil-says-petrobras-ceo-2023-11-07/