Financial institutions that maintain relations with people or entities under US sanctions are in danger of suffering severe penalties, including loss of access to the US financial system. The measure is based on magnitsky law, a legal instrument that allows secondary sanctions on banks and companies that do business with targets of punishment determined by Washington.
The rule especially reaches dollar operations and compromises bonds with US -based banks, which may have great economic impact on those involved.
The Trump administration is studying a new wave of retaliation against Brazil, with announcement forecast in the coming days. The sanctions, in the final stages of elaboration, would hit names in the high level of the Planalto Palace and Ministers of the Supreme Federal Court (STF). The measures would be grounded in the magnitsky law and aim to hold agents for practices considered abusive and contrary to individual rights.
Among the punishments evaluated is the suspension of visas to authorities linked directly to President Lula. Only the list of the executive, the first lady and the vice-president Geraldo Alckmin would be off the list.
Diplomatic crisis on radar
There is also expectation of diplomatic hardening. One of the scenarios considered includes the removal of Brazilian Ambassador’s credentials in the US, Maria Luisa Viotti Ribeiro – a movement that would indicate the temporary freezing of diplomatic relations between the two countries.
In addition to sanctions to authorities, additional measures can reach STF ministers and also digital platforms involved in Supreme Court decisions.
So far, Donald Trump has not named an American ambassador to Brazil and there are no indications that this will change soon.
