UPDATE 1-Brazil, Russia plan to boost trade, investment

* Two BRIC giants want to work on space, planes together

* Lula makes fourth visit to Moscow, Iran on agenda

* Lula says BRICS should trade in own currencies

(Adds Lula suggesting Brazil, Russia trade in own currencies)

MOSCOW, May 14 (BestGrowthStock) – Brazilian President Luiz Inacio
Lula da Silva called for closer business and investment ties
with Russia on Friday, saying the two BRIC states should use
their own currencies for trade, not the dollar.

“From 2002 to 2008, trade between Russia and Brazil grew
five times,” Lula said in a speech to a business forum during a
visit to Russia.

“But that is not enough. We need to make a quantative
leap..and define new areas for partnership in areas like energy,
infrastructure and space exploration.”

Lula said a first step would be for Russia and Brazil to
trade using their own currencies instead of dollars or euros.

“We can’t…do business in another currency which we don’t
control and we don’t produce,” he said.

“This is a challenge for Brazil and Russia, a challenge for
Brazil and the BRICs and a challenge for the new commercial
logic of the 21st century.”

Lula then met President Dmitry Medvedev at the Kremlin,
their second meeting in less than a month, after Medvedev
attended a summit of the BRIC nations — Brazil, Russia, India
and China — in April in Brasilia.

Lula is making his fourth visit to Moscow, an indication of
the importance attached by both sides to developing new
relationships that reflect the growing economic and political
clout of the BRIC states.

Lula and Medvedev were also expected to discuss Iran during
the Brazilian leader’s trip.

Lula is making what Washington has termed “perhaps the last
big shot” at persuading Iran to negotiate over its nuclear
programme before new U.N. sanctions.

He will travel on to Tehran after his Moscow visit, which
includes a meeting on Friday afternoon with Russia’s most
powerful politician, Prime Minister Vladimir Putin.

Brazil and Russia are both unenthusiastic about new
sanctions against Iran until all other avenues for dialogue have
been exhausted.

Brazil and Turkey, which hold rotating seats on the U.N.
Security Council, have talked to Iran to try to revive a
moribund agreement under which Tehran would send low-grade
uranium abroad for processing and receive higher-grade uranium
in return.

Lula and Medvedev were also to sign a strategic partnership
agreement which will map out how their relations will develop,
the Kremlin said.

The pact calls for increased cooperation on energy — where
Russia is offering Brazil nuclear power technology and gas
liquefaction technology — and in high-tech areas such as space
exploration and aircraft building, officials on both sides said.

Russia’s giant gas firm Gazprom (GAZP.MM: ) plans to open an
office in Rio de Janeiro this year as part of these efforts, the
Kremlin said.

Russia and Brazil are both major commodity nations, with
Russia among the world’s top energy and metals producers and
Brazil strong in exports of agricultural products, iron ore,
cars and machinery.

Trade between the two BRIC giants grew to $6.8 billion in
2008 but fell back to $4.6 billion the following year because of
the global financial crisis, the Kremlin said. Lula said he was
confident that Brazil-Russia trade could pass $10 billion this
year.

Investing Research

(Editing by Angus MacSwan)

UPDATE 1-Brazil, Russia plan to boost trade, investment