Argentina’s Milei Warns Against Extortion in Energy Supply Dispute
Government Accuses Province of Extortion
Argentina’s President Javier Milei denounced the threat made by the oil-rich province of Chubut to cut off gas and oil supplies as an act of extortion. The dispute arose over tax disbursements to the region, leading to a tense standoff.
Central Government Holds Back Funds
Following the central government’s decision to withhold funds amounting to $16 million from Chubut due to outstanding debts, Governor Ignacio Torres retaliated by threatening to disrupt energy supplies. This move was supported by other governors in southern Argentina.
Presidential Spokesman Denounces Threat
Presidential spokesman Manuel Adorni condemned the province’s threat, labeling it as extortion against the Argentine people. He emphasized that the government was acting within the confines of the law and stressed that any disruption of energy supply would be unjustifiable.
Union Urges Political Resolution
The Private Oil and Gas Union of Rio Negro, Neuquen, and La Pampa called for a political resolution to the conflict, cautioning against halting production or supply. Marcelo Rucci, the union’s general secretary, emphasized the need for a peaceful resolution.
Milei Stands Firm on Debt Repayment
President Milei reiterated the contractual obligation of Chubut to repay its debts, warning that failure to do so would constitute a criminal offense. He emphasized the importance of upholding energy supply commitments despite the ongoing dispute.
Uncertainty Looms Over Energy Production
With tensions escalating, the future of energy production in Chubut and beyond remains uncertain. The standoff highlights the challenges faced by the government in balancing fiscal constraints with regional demands.
