The Brazilian state oil company Petrobras received an order for Argentina for defer payments for some electricity import contractsthree sources familiar with the talks told Reuters on Monday.
Two Brazilian sources reported that Petrobras is evaluating the request and a remaining Argentine source confirmed that the government had made the request to the company, which supplies electricity to Argentina from power plants in Brazil.
The move comes as Argentina, grappling with high inflation and meager central bank reserves ahead of this year’s presidential election, you need to secure a crucial power supply to heat homes during the winter.
Argentina is seeking better contractual terms to honor its commitments in the face of the country’s fiscal challenges, the sources said.
According to one of the informants, Argentina is pushing to modify its monthly commitments to Petrobras under current contracts to make payments every 180 days. All three sources requested anonymity due to the sensitivity of the discussions.
The request to defer payments came during a meeting between the presidents of the two countries, Luiz Inácio Lula da Silva and Alberto Fernándezin Brasilia last week, according to the newspaper O Globo, which reported that Petrobras CEO Jean Paul Prates also participated in the meeting.
Lula and Fernández are expected to meet again on Tuesday at a Mercosur trade bloc meeting in northern Puerto Iguazú, Argentina.
Source: Ambito
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