Argentina's main petroleum-producing provinces have threatened to cut supplies to the rest of the country over funding cuts ordered by President Javier Milei.

"Not a drop of oil will come out on Wednesday if they don't respect the provinces once and for all and take their foot off our back," Governor Ignacio Torres of southern Chubut province told television channel C5N on Saturday.

Torres and counterparts from five other Patagonian provinces announced Friday that "if the Economy Ministry does not deliver its (financial) resources to Chubut, then Chubut will not deliver its oil and gas."

The provincial leaders were angered by the austerity-minded Milei's insistence on withholding from Chubut some 13.5 billion pesos ($15.3 million) in monthly transfers of federal tax revenues.&nbsp;

Economy Minister Luis Caputo argued on X that the cut was necessary to collect on unpaid debt from Chubut to the federal government -- and that 10 other provinces also owe money.

In a message on X, the former Twitter, Milei denounced the southern leaders as "fiscal degenerates."&nbsp; 
 
Argentina is the world's 39th largest exporter of crude oil and the 20th largest of gas. It imports refined fuels for internal consumption.

Milei, who was flying Saturday to the United States to attend a conservative gathering to be addressed by Donald Trump, took to X -- in scores of posts -- to blast Torres by his nickname, denouncing "Nacho and his accomplices."

He reminded them of an article in the penal code providing for jail sentences of up to two years for anyone hindering energy supplies.

A statement from the president's office denounced "the waste of the provinces that refuse to reduce unnecessary expenses" and referred to the provinces' opposition as "a Chavista threat."

Hours later, Torres responded: "I hope there is a channel for dialogue. The problem is that you don't know who to talk to."

The dispute arises amid growing protests over price and fee increases as the new president promotes extensive deregulations and drastic fiscal adjustment.

Argentina's main petroleum-producing provinces have threatened to cut supplies to the rest of the country over funding cuts ordered by President Javier Milei. "Not a drop of oil will come out on Wednesday if they don't respect the provinces once and for all and take their foot off our back," Governor Ignacio Torres of southern Chubut province told television channel C5N on Saturday.

Argentina's main petroleum-producing provinces have threatened to cut supplies to the rest of the country over funding cuts ordered by President Javier Milei. "Not a drop of oil will come out on Wednesday if they don't respect the provinces once and for all and take their foot off our back," Governor Ignacio Torres of southern Chubut province told television channel C5N on Saturday. Torres and counterparts from five other Patagonian provinces announced Friday that "if the Economy Ministry does not deliver its (financial) resources to Chubut, then Chubut will not deliver its oil and gas." The provincial leaders were angered by the austerity-minded Milei's insistence on withholding from Chubut some 13.5 billion pesos ($15.3 million) in monthly transfers of federal tax revenues. Economy Minister Luis Caputo argued on X that the cut was necessary to collect on unpaid debt from Chubut to the federal government -- and that 10 other provinces also owe money. In a message on X, the former Twitter, Milei denounced the southern leaders as "fiscal degenerates." Argentina is the world's 39th largest exporter of crude oil and the 20th largest of gas. It imports refined fuels for internal consumption. Milei, who was flying Saturday to the United States to attend a conservative gathering to be addressed by Donald Trump, took to X -- in scores of posts -- to blast Torres by his nickname, denouncing "Nacho and his accomplices." He reminded them of an article in the penal code providing for jail sentences of up to two years for anyone hindering energy supplies. A statement from the president's office denounced "the waste of the provinces that refuse to reduce unnecessary expenses" and referred to the provinces' opposition as "a Chavista threat." Hours later, Torres responded: "I hope there is a channel for dialogue. The problem is that you don't know who to talk to." The dispute arises amid growing protests over price and fee increases as the new president promotes extensive deregulations and drastic fiscal adjustment.

Oil-rich Argentine provinces threaten to cut supply in dispute with Milei

Argentina is grappling with a severe economic crisis as the annual inflation rate surged past 211 per cent in December, reaching levels not witnessed since the early 1990s, according to official data. <o:p></o:p>

President Javier Milei, a newly-elected libertarian leader, has implemented stringent austerity measures to curb hyperinflation. <o:p></o:p>

The country experienced a monthly inflation rate of 25.5 per cent, slightly below predictions, following a significant devaluation of the peso currency after Milei assumed office on December 10. <o:p></o:p>

This move aimed to address the deep-rooted economic challenges that have plagued Argentina for years.<o:p></o:p>

"We've had to eliminate things that made life a little brighter," Reuters quoted retiree Susana Barrio, 79, who highlighted the personal toll of surging inflation. <o:p></o:p>

The escalating prices have forced some, like Barrio, to forgo traditional social gatherings, such as inviting friends for asado (roast meat) barbecues, a customary part of Argentine social life. <o:p></o:p>

The economic strain is palpable among the population, leading to adjustments in daily life as citizens grapple with the economic fallout. <o:p></o:p>

The inflation surge has propelled Argentina beyond regional peer Venezuela, long considered an inflation outlier in Latin America.<o:p></o:p>

President Javier Milei, an unconventional political figure who gained power on a wave of voter dissatisfaction with the economic situation, is championing austerity measures to tackle inflation, reduce fiscal deficits, and replenish government coffers. <o:p></o:p>

However, Milei acknowledges the complexity of the situation, cautioning that improvements may take time, and the economic landscape could worsen before witnessing any positive changes. <o:p></o:p>

The impact of hyperinflation is reverberating through Argentine society, with a significant portion of the population already grappling with poverty. <o:p></o:p>

Reuters cited another retiree - Graciela Bravo, 65, who highlighted the rising cost of essentials, noting, "Nothing is cheap." <o:p></o:p>

She shared her meticulous approach to shopping, counting potatoes to manage costs. <o:p></o:p>

Others, like 49-year-old lawyer Alejandro Grossi, express weariness at the persistent rise in prices, describing adaptation as a necessity.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Argentina is grappling with a severe economic crisis as the annual inflation rate surged past 211 per cent in December, reaching levels not witnessed since the early 1990s, according to official data.

Argentina is grappling with a severe economic crisis as the annual inflation rate surged past 211 per cent in December, reaching levels not witnessed since the early 1990s, according to official data. President Javier Milei, a newly-elected libertarian leader, has implemented stringent austerity measures to curb hyperinflation. The country experienced a monthly inflation rate of 25.5 per cent, slightly below predictions, following a significant devaluation of the peso currency after Milei assumed office on December 10. This move aimed to address the deep-rooted economic challenges that have plagued Argentina for years. "We've had to eliminate things that made life a little brighter," Reuters quoted retiree Susana Barrio, 79, who highlighted the personal toll of surging inflation. The escalating prices have forced some, like Barrio, to forgo traditional social gatherings, such as inviting friends for asado (roast meat) barbecues, a customary part of Argentine social life. The economic strain is palpable among the population, leading to adjustments in daily life as citizens grapple with the economic fallout. The inflation surge has propelled Argentina beyond regional peer Venezuela, long considered an inflation outlier in Latin America. President Javier Milei, an unconventional political figure who gained power on a wave of voter dissatisfaction with the economic situation, is championing austerity measures to tackle inflation, reduce fiscal deficits, and replenish government coffers. However, Milei acknowledges the complexity of the situation, cautioning that improvements may take time, and the economic landscape could worsen before witnessing any positive changes. The impact of hyperinflation is reverberating through Argentine society, with a significant portion of the population already grappling with poverty. Reuters cited another retiree - Graciela Bravo, 65, who highlighted the rising cost of essentials, noting, "Nothing is cheap." She shared her meticulous approach to shopping, counting potatoes to manage costs. Others, like 49-year-old lawyer Alejandro Grossi, express weariness at the persistent rise in prices, describing adaptation as a necessity. (With inputs from Reuters)

Argentina faces economic crisis as inflation soars over 200pc under President Javier Milei

Argentina on Friday (Dec 29) revealed that it was rejecting the invitation to join the BRICS bloc of developing nations, in a drastic foreign policy shift under the new administration.

Newly elected far-right President Javier Milei in a letter dated December 22 told his counterparts from Brazil, Russia, India, China and South Africa that the timing was not opportune for Argentina to join the grouping.

Milei said in his letter that his approach to foreign affairs “differs in many aspects from that of the previous government. In this sense, some decisions made by the previous administration will be reviewed.”&nbsp;

<h2>Campaign promise fulfilled</h2>

President Milei during his campaign had vowed to push for aligning his nation’s foreign policy with the West and ditching the previous administration’s efforts to seek closer ties with the developing economies.

Former centre-left President Alberto Fernandez wanted to join forces with the BRICS group, which accounts for 25 per cent of the global GDP.

<a href="https://www.wionews.com/india-news/exclusive-argentina-eyes-indias-tejas-jets-amidst-uk-parts-hurdle-617160">Also read:&nbsp;&nbsp;Exclusive | Argentina eyes India's Tejas jets amidst UK parts hurdle</a>

Milei not only pushed for pro-West policies during his campaign but also targeted nations “ruled by communism”, in a veiled dig at China and neighbouring Brazil.

However, the president in his letter clarified that Argentina will seek to “intensify” its economic ties with BRICS in order to avail better trading and investment opportunities.

<h2>Argentina undergoing drastic policy changes</h2>

After taking office in December, President Milei has undertaken drastic policy changes, while vowing to support US and Israel.

"Our geopolitical alignment is with the United States and Israel. We are not going to ally with communists," said Milei during his election campaign. However, after taking office, Milei's stance on China and Brazil has weakened as he has taken a more conciliatory tone.

Watch:&nbsp;Argentina confirms first human case of 'wee'

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He has also undertaken bold economic reforms since taking office. Milei has already devalued the peso by a staggering 54 per cent, pushing the official exchange rate from 366.5 to 800 pesos per US dollar.&nbsp;

Experts noted that Milei's administration was gearing up for a challenging period, with soaring inflation coming in at 160.9 per cent in November 2023.

(With inputs from agencies)

Argentina on Friday (Dec 29) revealed that it was rejecting the invitation to join the BRICS bloc of developing nations, in a drastic foreign policy shift under the new administration.

Argentina on Friday (Dec 29) revealed that it was rejecting the invitation to join the BRICS bloc of developing nations, in a drastic foreign policy shift under the new administration. Newly elected far-right President Javier Milei in a letter dated December 22 told his counterparts from Brazil, Russia, India, China and South Africa that the timing was not opportune for Argentina to join the grouping. Milei said in his letter that his approach to foreign affairs “differs in many aspects from that of the previous government. In this sense, some decisions made by the previous administration will be reviewed.” Campaign promise fulfilled President Milei during his campaign had vowed to push for aligning his nation’s foreign policy with the West and ditching the previous administration’s efforts to seek closer ties with the developing economies. Former centre-left President Alberto Fernandez wanted to join forces with the BRICS group, which accounts for 25 per cent of the global GDP. Also read: Exclusive | Argentina eyes India's Tejas jets amidst UK parts hurdle Milei not only pushed for pro-West policies during his campaign but also targeted nations “ruled by communism”, in a veiled dig at China and neighbouring Brazil. However, the president in his letter clarified that Argentina will seek to “intensify” its economic ties with BRICS in order to avail better trading and investment opportunities. Argentina undergoing drastic policy changes After taking office in December, President Milei has undertaken drastic policy changes, while vowing to support US and Israel. "Our geopolitical alignment is with the United States and Israel. We are not going to ally with communists," said Milei during his election campaign. However, after taking office, Milei's stance on China and Brazil has weakened as he has taken a more conciliatory tone. Watch: Argentina confirms first human case of 'wee' × He has also undertaken bold economic reforms since taking office. Milei has already devalued the peso by a staggering 54 per cent, pushing the official exchange rate from 366.5 to 800 pesos per US dollar. Experts noted that Milei's administration was gearing up for a challenging period, with soaring inflation coming in at 160.9 per cent in November 2023. (With inputs from agencies)

Argentina’s new far-right President Javier Milei ditches BRICS to ‘support US and Israel’