No more oil deliveries
Governors in Argentina are threatening Milei with an energy cut
February 25, 2024, 7:49 a.m
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The struggles that right-wing populist Argentine President Javier Milei is waging because of his radical politics are diverse. Several governors are now threatening to stop oil and gas deliveries because of a debt dispute. They demand more respect from the ultra-liberal politician.
In a financial dispute with President Javier Milei, several Argentine provincial governors have threatened to stop deliveries of natural gas and oil to the rest of the country. “Not a drop of oil will come out on Wednesday unless they respect the provinces once and for all and take their foot off our backs,” the governor of southern Argentina’s Chubut province, Ignacio Torres, told broadcaster C5N.
Torres had previously received the support of the governors of the five other provinces of the Patagonia region – Tierra del Fuego, Santa Cruz, RÃo Negro, La Pampa and Neuquén. The region is known for its oil and natural gas production.
The reason for the dispute is a decision by the Argentine government to stop 13.5 billion pesos (around 14.1 million euros) in monthly transfers from federal taxes to Chubut. Economy Minister Luis Caputo explained that the cancellation of the transfers served to collect the province’s unpaid debts to the state – and also affected other provinces. Chubut doesn’t want to accept this. Milei condemned the actions of the provincial governors on the short message service X, formerly Twitter, and threatened legal action.
The new president has prescribed tough austerity measures for the South American country, which has been hit by a severe economic crisis. The ultra-liberal and right-wing populist political newcomer took part in the CPAC conservative conference near the US capital Washington on Saturday and met former US President Donald Trump there. “You were a great president, I hope you will be again,” Milei said to Trump there.