Milei warns that cutting off hydrocarbon supplies would violate property rights

The president of Argentina, Javier Mileiwarned this Sunday that cutting the supply of hydrocarbonsas the Government of the southern Argentine province of Chubut threatens to do, would imply violating property rights.

“That would imply violating property rights, which is a crime. If he does, Justice will take action,” he warned. Milei in television statements.

The governor of the southern province of Chubut, Ignacio Torreswarned last Friday that he will prevent gas and oil shipments from his province starting next Wednesday if the national government does not transfer the funds from the collection of federal taxes that the State must distribute among the provinces of the country.

Chubut is the second largest producer of oil in Argentina (almost 21% of the country’s total) and the third largest producer of natural gas (6%).

By the Argentine Constitution, natural resources are the property of the provinces, which can give concessions to companies for their exploitation, as is the case with hydrocarbons.

The conflict is part of the severe fiscal adjustment plan that the Milei Government and which has meant, among other spending cuts, a drastic drop in transfers to the country’s 23 provinces and the autonomous city of Buenos Aires.

Chubut and controversies over funds

In the case of Chubut, there is also a controversy over funds that the province owes to the national State, by virtue of which it withheld in February 13.5 billion pesos (15.7 million dollars) that had to be transferred to the province for federal tax sharing.

The national government alleges that this retention is legal since Chubut has taken on debt by putting as collateral the funds that correspond to it through federal co-participation.

But provincial executive assures that this measure has been “arbitrary” and that he tried to manage a restructuring of the debt and then a cancellation of it in the face of the new Argentine administration and had no response, and does not rule out taking the controversy to Justice.

In statements this Sunday to the LN+ channel, Milei He stated that Torres is “a poor boy who cannot even read a contract” and has “very great intellectual precariousness.”

He also regretted that the other governors of Patagonia (south) supported Torres and accused them and other provincial leaders of not wanting to make the necessary fiscal adjustment.

Torres belongs to Propuesta Republicana (Pro), the center-right party of former president Mauricio Macri (2015-2019), a close ally of Javier Milei.

The Pro, in turn, is a member of the Together for Change front, a coalition that governs ten districts (Chaco, Corrientes, Entre Ríos, Jujuy, Mendoza, San Juan, San Luis, Santa Fe and the city of Buenos Airesin addition to Chubut itself) and whose leaders have also supported Torres in his claim.

In this context, furthermore, several provinces have already gone to federal courts and the Supreme Court against Milei’s adjustment measures.