BRAZIL'S OIL REFORM THREATEN OLYMPICS

RIO DE JANEIRO () - A proposed cut to Rio de Janeiro's share of Brazil's oil revenues has provoked a furious reaction in the beach-side city, with officials saying the change would jeopardize its ability to host the World Cup and the Olympic Games.

• The head of Rio's Olympics organizing committee on Monday became the latest official to warn against an oil reform amendment approved by the lower house of Congress, saying a resulting funding shortage could leave the city unable to prepare for the 2016 Games.
• "The reduction in revenues from oil exploration would leave the state of Rio de Janeiro without the conditions to complete the works needed for the 2016 Games," Carlos Arthur Nuzman said in a statement.
• Nuzman, who also is head of the Brazilian Olympic Committee, added that a lack of funding could lead to a breach of Rio's contract with the International Olympic Committee, which awarded the city Latin America's first Olympics last October.
• The approval of the amendment last week forcing Rio to share its oil riches with other states could cost the state about 7 billion reais ($4 billion) a year, officials say. State officials say the amendment would mean a cut of about 80 percent in Rio's share of future oil royalties.

Source: Reuters