Argentine economist criticizes province’s energy supply threat as extortion, warns against unfair practices.

Argentina’s Milei Condemns Extortion by Province Threatening Energy Supply

Government’s Response to Chubut’s Threat

Argentina’s libertarian President Javier Milei’s government labeled the oil-rich province of Chubut’s threat to cut off gas and oil supplies as “extortion” amid a dispute over tax disbursements. The conflict arose when the central government withheld funds from Chubut, triggering Governor Ignacio Torres to threaten an energy supply cut.

Presidential Spokesman’s Statement

Presidential spokesman Manuel Adorni denounced the threat, calling it an act of extortion against the Argentine people. He emphasized that the State was operating within the law by withholding funds due to the region’s debt to the Argentine state.

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Chubut Governor’s Defiance

Despite the government’s stance, Governor Torres stood by his threat, warning of production interruptions not only in Chubut but nationwide. He expressed concerns that other regions could face similar actions if Chubut succumbed to the pressure.

Union’s Perspective

Marcelo Rucci, the general secretary of the Private Oil and Gas Union, urged a political resolution to the conflict. He stressed the importance of maintaining production and supply, urging all parties to find a solution without halting operations.

Milei’s Fiscal Strategy

President Milei, grappling with fiscal challenges, highlighted the necessity for Chubut to repay its debts and fulfill energy supply commitments. He warned that failing to do so could constitute a criminal offense, emphasizing the legal obligations at play.

Conclusion

The escalating tension between the central government and Chubut poses a significant challenge that requires a balanced and strategic resolution to safeguard energy production and supply across Argentina.

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