Brazil's Rousseff vetoes parts of oil royalties bill


Brazil's President Dilma Rousseff gives a speech at an event for the announcement of measures to expand the Affectionate Brazil Program, which aims to fight poverty, in Brasilia November 29, 2012. REUTERS/Ueslei Marcelino

BRASILIA (Reuters) - President Dilma Rousseff on Friday vetoed parts of a controversial oil royalties bill that pit Brazil's oil-producing states against the rest of the country in a battle over future oil wealth.

Seeking a compromise on perhaps the most divisive issues to arise during her nearly two-year-old presidency, Rousseff vetoed clauses that would slash income for Brazil's main oil states, including Rio de Janeiro.

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