Brazil police to arrest seven more in Petrobras corruption probe

RIO DE JANEIRO (Reuters) - Brazil's federal police said it had issued seven arrest warrants on Friday in another phase of a corruption probe focused on state-run oil company Petrobras (PETR4.SA), as the investigation continues to move further into the political realm.

André Vargas, ex-congressman for the ruling Workers' Party and vice-president of the lower house, was among the seven wanted by police according to G1, the news website for media outlet Globo. The site also said a warrant had been issued for the arrest of Luiz Argolo, ex-congressman for the smaller opposition Party of Solidarity.

A multibillion-dollar kickback scheme uncovered at Petroleo Brasileiro SA, as the oil company is formally known, has shaken President Dilma Rousseff's government and threatens to further slow a stagnant economy.

The investigation dubbed "Operation Car Wash" has led to the indictment of scores of executives from Brazil's top builders and implicated dozens of politicians, the majority of them from Rousseff's Workers' Party, who allegedly received graft money.

(Reporting by Stephen Eisenhammer Editing by W Simon)