Guzmán’s nod to the private sector: he releases dollars to oil companies

There was a moment when Martín Guzmán was proud of one of the shelves in his office, perhaps the one that brought him the greatest pleasure. The photo shows him in the foreground accompanied to his left by a Cristina Kirchner involved in the speech of the Minister of Economy and an Alberto Fernández, looking in the middle. The meeting, at this dystopian point, was completed in the presence of Horacio Rodríguez Larreta and Sergio Massa.

Those times, where debt settlement could bring together Front for All members, governors and Together for Change at the same table, are already part of ancient times. Without the pressure of a pandemic forcing agreements or the support of the ruling party, Guzmán launches a move to seek investment. This Tuesday of 10 with an action at Casa Rosada, surrounded by businessmen, governors and unionists.

This is to express removal of restrictions on access to foreign exchange in the oil sector, a proposal the government tried to advance last year in failed legislation to promote investments in hydrocarbons and that now, at least in regards to the release of dollars, will be revived by a decree. This is negotiated with major players in the industry, in exchange for companies that increase production and investment.

As Clarín found out, the minister was in charge of organizing the event at the Bicentennial Museum through his team and summoned key advocates of the hydrocarbon sector. Paolo Rocca (Techint), Alejandro Bulgheroni (PAE), Eduardo Eurnekian (CGC), José Luis Manzano (Phoenix Global Resources and Edenor) and the YPF front page, led by its president Pablo González and CEO Sergio Affronti.

Representatives from equinor Argentina and Petronas, among other leading companies, and presidents of business chambers of activity.

The Economy and the Energy Secretary held a separate zoom meeting on Friday with executives of oil companies to anticipate the rules of the new exchange scheme. It is hoped that they will be more free to dispose of the dollars they earn on their exports, with a floor of at least 20% in increased productionsimilar to the rate envisioned in the legislative initiative.

“Investments are long -term and some mechanism is needed to pay off these investments. On the other hand, the investments will generate foreign exchange for the country,” they pointed out to one of the invited companies.

On behalf of the government, the participation of the Chief of Staff, Juan Manzur, Foreign Minister Santiago Cafiero and his Secretary of Economic Relations, Cecilia Todesca Bocco, and the Secretary of Energy, Darío Martínez, is expected.

On the provincial side, the participation of the governors of Chubut, Formosa, La Pampa, Neuquén at Tierra del Fuego, along with their energy ministers. The head of the CGT, Héctor Daer, will also participate, along with leaders of energy unions, such as Guillermo Mangone (Federation of Gas Industry Workers), and Pedro Milla (Argentine Federation of Oil, Gas and Biofuels Unions), among others.

In this way, the sectors on which Guzmán now relies more are present against the attacks of Kirchnerism to replace him.