Brazil Snubs Obama Administration and Signs Major Economic Deal with Iran

Brazilian President Lula and Iranian President Ahmadinejad

Today, in a slap at U.S. foreign policy, Brazilian President Luiz Inácio Lula da Silva (Lula) signed eight memorandums of understanding with Iran strengthening and deepening ties between the two nations. Besides having the 10th largest economy in the world, Brazil is a current member of the U.N. Security Council which is slated to vote on imposing sanctions on Iran.

The eight memorandums between Brazil and Iran relate to commercial cooperation, opening of lines of credit, and technological trade and collaboration relating to energy, particularly petroleum. The main item involves opening a line of direct credit of $1 billion euros between the two countries. This will facilitate business investment in Brazil and Iran.

Brazil's action is a blow to President Obama's push to impose U.N.-backed economic sanctions on Iran for continuing to develop nuclear weapons. Last month China gave tepid agreement to economic sanctions. But today, Brazil gave a resounding thumbs down to the tune of $1 billion euros.

 Reuters photo:  Lula and Khamenei

Ayatollah Khamenei, Iran's Supreme Leader, took advantage of these diplomatic and economic agreements to praise Brazil's independence in countering Obama administration initiatives and "arrogant policies" of the United States.