The leakage of four million litres of crude oil from a refinery operated by state-owned Petrobras Limited has resulted in Brazil's worst enviornmental disaster in 26 years. The oil spill has contaminated the Iguacu river and endangered its acquatic life.

Jose Sarney Filho, environmental minister has warned Petrobras to control the spill before it reaches the world famous Iguacu waterfalls, which divides Brazil and Argentina. He has even threatened to impose a fine of more than us $80 million in case it is unable to do so. According to environmental experts the slick is reaching an area where the Iguacu river widens, a point where it is going to become difficult to bring things under control.