Sacha Baron Cohen was interviewed by Variety, which focused mainly on the story of Borat. As part of the interview, the actor talked about why he brought the character back and how he managed to make the character so funny a second time. At the end of the interview, he was also asked if Borat would return in the future.
I brought Borat back because of Trump. The second part had a goal, and I see no point in filming a sequel. So yes, it is shelved.
It looks like Borat fans should accept the fact that Sacha Baron Cohen will probably never return as a cult character, unless democracy is once again threatened.
The original film was released in 2006 and grossed $ 261 million on a budget of $ 18 million. The sequel came out in 2020 on Amazon Prime Video streaming service.