Rio's Acting Governor Orders Expropriation of Refit Refinery Land Amid Tax Fraud Investigation

Ricardo Couto, the acting governor of Rio de Janeiro, has announced the decision to expropriate the land of the Refit refinery, owned by businessman Ricardo Magro. This move follows an extensive Federal Police investigation, called Operation Sem Refino, targeting alleged tax fraud, public resource evasion, and illegal favoritism tied to the refinery's operations.

Refit owes approximately R$ 14.3 billion in ICMS taxes and carries an estimated total fiscal debt of about R$ 30 billion to the states of Rio de Janeiro and São Paulo. Couto's administration is assessing the expropriation value, with plans to use the proceeds to offset these substantial tax liabilities.

Operation Sem Refino, launched on May 15, also implicates former governor Cláudio Castro, accused of facilitating the interests of Magro's group through strategic appointments within government departments. The probe additionally examines potential illicit payments made to public officials to ensure Refit's continued activity despite recurring fiscal and environmental challenges.

The expropriation decision has garnered interest from Petrobras, which has expressed intent to utilize the Refit site to expand the state's refining capacity. This development aligns with broader governmental efforts to address fiscal irregularities and reclaim public assets linked to tax evasion.

This decisive action by the Rio government underscores a robust legal response to widespread tax fraud impacting state revenues and public trust. The investigation continues, with further details expected as authorities finalize the valuation and proceed with the expropriation process.