Brazil Saves Milei Government — Natural Gas Shortage in Argentina
A Brief Summary
President Luiz Inácio Lula da Silva’s government has taken a significant step to assist Javier Milei, President of Argentina, who is facing a severe energy crisis in the midst of autumn. Brazil decided to support its neighboring country in purchasing natural gas from Petrobras, even without direct dialogue between the two presidents.
This intervention comes at a critical time for Argentina, which, after the weakening of state-owned enterprises and international isolation, is struggling to ensure the supply of essential energy for its population and industry. Despite Milei’s and the Argentine government’s constant attacks on Brazilian democracy, the Brazilian government chose to act in support.
The Milei administration was racing against time as the gas shortage was already beginning to cripple part of Argentina’s industrial activity, causing queues and gas station closures. The crisis was exacerbated by increased consumption in recent weeks.
Close aides to President Lula reported that the request to Petrobras was made urgently on Wednesday, 05/22/2024. Despite the Brazilian company’s willingness to send the requested gas, the Argentine government took two days to present the letter of credit, reflecting its disregard even in times of need.
The initial letter of credit did not meet all the requirements demanded by Petrobras as payment guarantee and was rejected. After negotiations, a new letter of credit was issued on Wednesday morning.
The news of the cargo release was announced directly by Chancellor Vieira to his Argentine counterpart around 7 a.m. on 05/29/2024. The start of gas supply in the country was announced by the spokesman of the Casa Rosada, Manuel Adorni, in a press conference, bringing relief to the Argentine population.
A Brief Comment
This once again demonstrates the realization of predictions made by many analysts, including myself, about the unfolding of the Milei government. A government that finds itself lining its own pockets without providing real assistance to the population. Measures like this, where the country finds itself compelled at the last minute to seek help from those it declares as enemies, will become increasingly common. The assistance that Milei expects from countries he praises, such as the United States, will not translate into measures to alleviate Argentinean needs. In fact, this dependency is only likely to worsen the situation, as the U.S. is becoming owners of Argentinean oil, gas, and derivative state-owned enterprises, as well as the energy supply sector.
Milei’s administration, with its controversial policies and apparent lack of strategic vision, is leading Argentina into a vicious cycle of dependence and crisis. The urgent need to import gas from Brazil illustrates a larger failure: the inability to ensure internal energy security, putting the country’s economy and citizens’ quality of life at risk.
The growing influence of the United States on Argentina’s strategic sectors raises questions about national sovereignty. The sale of strategic assets to foreign investors, often under unfavorable conditions, compromises the country’s control over its own resources, leaving it at the mercy of external interests that do not necessarily align with the needs of the Argentinean people. This dependence on foreign powers puts Argentina in a vulnerable position, where crucial decisions about energy and natural resources are influenced by external interests.
Milei’s management, marked by aggressive rhetoric and actions that often contradict his speeches, proves incapable of resolving the country’s internal problems. Instead of strengthening national institutions and promoting sustainable development, the government opts for palliative and temporary solutions. The recent case of the emergency purchase of natural gas from Brazil is a clear example of this ineffectiveness. While the Brazilian government acts in a gesture of goodwill, the Argentinean administration demonstrates unpreparedness and delay in negotiations, reflecting a lack of planning and coordination that further aggravates the crisis.
The situation demands a profound review of government policies. The Argentinean government must focus on strengthening its internal capacities by investing in energy infrastructure, fostering innovation in the sector, and creating a business environment that encourages local production and self-sufficiency. Working with neighboring countries and strengthening regional alliances can provide more stable and reliable support, as well as promote economic integration that benefits the entire region.
If Milei truly wishes to lead Argentina to a prosperous future, he must abandon confrontational policies and seek sustainable, long-term solutions. This includes responsible management of natural resources, promotion of balanced economic development, and ensuring that implemented policies benefit all Argentinean citizens, not just a privileged elite. The real solution lies in leadership that prioritizes the well-being of the Argentinean people and national sovereignty above individual interests and dubious alliances.
Brazil has always been a great ally of Argentina, even though many Argentines view us with suspicion or even hostility. This relationship of partnership and mutual support has been crucial for both countries over the years, enabling the overcoming of crises and the promotion of a more integrated regional development.
Even in times of tension and political differences, Brazil has shown willingness to extend a helping hand, prioritizing the well-being of the Argentinean population over ideological or diplomatic disputes. The recent intervention to provide natural gas is just one example of how Brazil is willing to support its neighbors in times of need, putting humanitarian and economic interests above political differences.
This cooperative attitude is essential for strengthening ties between South American countries, promoting stability and regional progress. Economic interdependence and strategic partnerships are powerful tools for addressing common challenges, such as energy crises, natural disasters, and global economic fluctuations.
It is crucial that the Argentinean government stops attacking the democracies of South America and recognizes that this “vira-lata” crisis needs to be overcome as soon as possible. It should apologize and prioritize its true South American allies, after all, the country’s crises are the sole responsibility of the country itself and not its neighbors.
Another point I would like to emphasize is: imagine if the Brazilian government were similar to the Argentine government, desperate to stand out globally and attract attention. They would be popping champagne bottles to this day, celebrating for “saving” another government. Headlines would be plastered on every front page of the country, extolling this heroic moment, and it’s likely that the president would have made several public speeches about their supposed magnanimity, while insinuating the world’s dependence on them. And yes, I see the irony in that statement, but I want to remind you that I am just a very amateur writer and not the Brazilian government.
I bring this up because it only highlights the importance of the Argentine government rethinking its actions. Perhaps it’s time to adopt a more humble stance focused on internal well-being, rather than constantly seeking external recognition. The true greatness of a government lies in its ability to address internal issues and promote sustainable progress for the nation, not in chasing fleeting moments of fame on the global stage.
