Argentina's President Condemns Threat To Cut Energy Supplies

• Governor of Chubut threatens to cut energy supplies over withheld tax revenues.

• President Milei condemns the threat, emphasizing unity among Argentines.

• Governor of Chubut receives support from five other Patagonian governors.

Argentine President Javier Milei leaves the Holocaust museum after attending an event marking the International Day in Memory of the Victims of the Holocaust, in Buenos Aires, Argentina, Jan. 2

AP

The government of Argentina's President Javier Milei has condemned a threat by the governor of Chubut province to cut off energy supplies to the country. The dispute arose when the federal government withheld the transfer of 13,000 million pesos in tax revenues to Chubut. In response, Governor Ignacio Torres announced plans to halt oil and gas supplies if the funds are not released, with support from five other governors in Patagonia.

President Milei's administration characterized the threat as an attack on all Argentines, emphasizing the need for unity. The government criticized provincial leaders for seeking to live off the rest of the country due to their financial challenges. Milei's shock economic policies, including currency devaluation and budget cuts, have sparked tensions with provincial governments.

In a tit-for-tat move, the government reduced fiscal funds for Buenos Aires province, triggering a response from Governor Axel Kicillof. Kicillof expressed concern over the impact on national unity and vowed to challenge the decision in court. The escalating conflict between the federal government and provincial governors poses challenges for Milei's reform agenda, given his party's limited representation in Congress.