Brazilian budget freeze not expected to affect naval modernisation

23 May 2019

Despite public predictions to the contrary, Brazilian naval operations and proposed modernisation projects will likely be unaffected by the "freeze" of 44% Brazil's non-discretionary defence budget, or approximately BRL5.8 billion (USD1.4 billion) for the remaining period of the year, recently detailed by Defence Minister Fernando Azevedo e Silva.

For example, the budget cuts will not delay the following: the anticipated contract signing between state-owned company Empresa Gerencial de Projetos Navais (EMGEPRON) and the consortium Águas Azuis - formed by ThyssenKrupp Marine Systems (TKMS), Embraer Defesa & Segurança, and Atech Negócios em Tecnologia - to acquire four customised MEKO A-100 corvettes for commissioning by the navy between 2024 and 2028; the ongoing construction of four Riachuelo-class submarines with first-of-class S Riachuelo (S40) having been launched on 14 December 2018 for expected delivery in 2020; the launch of important ship tenders; modernisation of submarines, surface ships, helicopters, and fixed-wing aircraft; commissioning of new helicopters; scheduled maintenance of ships; and construction by Arsenal de Marinha do Rio de Janeiro (AMRJ) of patrol ship NPa Maracanã (P72).

Want to read more? For analysis on this article and access to all our insight content, please enquire about our subscription options at

(197 of 355 words)