MercoPress. South Atlantic News Agency

Chile exposed to Argentina

Argentina ensured Chile that the supply of oil and natural gas will proceed, and be honored, as established in the bilateral agreements. Argentine Foreign Affairs Secretary Carlos Ruckauf visited Santiago to relieve Chilean officials who were shocked when a few weeks ago in the midst of a labor dispute, union leaders blocked the supply of natural gas to Chile.

"We are committed to Chile, and we are committed to honor all international agreements with Chile", said Mr. Ruckauf who nevertheless admitted Argentine authorities were taken by surprise by the magnitude of the radical measures adopted in a recent labor conflict.

Mr. Ruckauf added that with bipartisan support the Argentine Senate is considering a bill that sanctions natural gas concessionary companies, including the loss of the concession, if the company is unable to comply with supply conditions or endangers Argentina's international agreements.

During Mr. Ruckauf's visit the Chilean government expressed support for Argentina and appealed to international multilateral organizations to help Argentina overcome the current financial crisis.

"From a regional and bilateral perspective, this (aid) is of particular relevance since its impact and solution not only affects Argentine interests, but also other countries such as Chile, with a relevant trade and significant investments in Argentina", underlined María Soledad Alvear Chilean Foreign Affairs Minister.

In the nineties, under former President Carlos Menem, Argentina became Chile's main energy supplier (natural gas and oil) with several pipelines crossing the Andes. Similarly, a significant proportion of Chile's pension funds, (several billion US dollars) are invested in Argentina, mainly in the generation and distribution of electricity in the metropolitan area of Buenos Aires.