Brazil: Protests over proposed oil law change that would drain money from Rio de Janeiro

Brazil: Protests over proposed oil law change

RIO DE JANEIRO — Tens of thousands of people have taken to the streets of Rio de Janeiro to protest against changes in an oil royalties law that would drain the city’s coffers.

Changes made by Brazil’s lower house of Congress would cut about $4 billion from Rio’s revenues annually. That would endanger the city’s ability to host the 2016 Olympics — with its $14 billion price tag — and the finals of the 2014 World Cup.

On Wednesday, Brazilian Energy Minster Edison Lobao said President Luiz Inacio Lula da Silva will veto the legislation if the Senate does not fix the royalty distribution plan.

In the past two years Brazil has discovered extensive offshore oil deposits.