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| April 23, 2015. Russian President Vladimir Putin and President of Argentina Cristina Fernandez de Kirchner during a meeting in the Kremlin (RIA Novosti / Alexey Druzhinin) |
Amidst the ongoing rumbling over the Falklands Island, Russia and Argentina today signed several strategic energy and trade cooperation deals. The deal signed in Moscow on Thursday, underlines Moscow's drive to deepen ties with countries in South America since coming under Western sanctions over the Ukraine crisis.
At a ceremony in the Kremlin, Russian President Vladimir Putin and Argentine President Cristina Fernandez hailed the agreements, which pave the way for closer cooperation on natural gas and nuclear energy in Argentina.
Russia's oil giant Gazprom signed the memorandum on cooperation with Argentine state oil company YPF, while Russia's Rosatom signed a similar deal for construction of a nuclear power plant in Argentina.
Argentin is locked in a running battle with the United Kingdom over the exploration and exploitation of oil resources in the Falklands. The Argentine government on Tuesday sued several energy and support companies that are drilling for oil near the Falkland Islands, the latest chapter of a longstanding dispute over the South Atlantic archipelag, The criminal case was filed in Rio Grande, Tierra del Fuego province which according to the Argentine constitution includes the Falklands and Antarctica.
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| “Argentina will defend its natural resources,” said Filmus, arguing that the companies are performing illegal acts by drilling near the Islands |
“Argentina will defend its natural resources,” said Daniel Filmus, Argentina's Secretary for Malvinas Islands (Faslklands) Affairs, arguing that the companies are performing illegal acts by drilling near the Islands, which the Argentine government claims.
Russia and Argentina's energy cooperation is viewed by experts as a move to checkmate British interests in the Falklands. "Russia and Argentina are developing their cooperation in the energy sphere," Putin told government officials.
"Our countries share long-standing relations of friendship and mutually beneficial cooperation, which have reached the level of a comprehensive and strategic partnership."
Putin said Gazprom was considering the possibility of jointly developing hydrocarbon deposits in Argentina and that heavy machinery producer Uralmash planned to form a joint venture with Argentine partners to produce oil equipment in Argentina.
Both countries are keen on fostering closer ties. Russia has been developing diplomatic, trade and energy deals with many countries in recent times. Russia shifted policy towards Asia, Africa and countries in South America since the European Union and the United States imposed economic sanctions over Russian policy on Ukraine and has sought out new business deals.
Argentina is also keen to reverse a costly energy deficit that will take as much as $200 billion investment to erase, YPF has said. Ostentatiously, key to the effort will be the development of the barely-tapped Vaca Muerta shale oil and gas field in Patagonia.
The two leaders also said they would consider using their national currencies rather than U.S. dollars in bilateral trade.
Russia and Argentina will consult on using national currencies in mutual trade settlements, Russian President Vladimir Putin said during a news conference with his Argentinian counterpart Cristina Fernandez de Kirchner.
“We agreed to hold extensive consultations on the question of using national currencies in trade payments between states and between commercial partners,” the Russian President said.
Russia has set up similar schemes with China, Iran, Egypt, and Turkey to cut out the US dollar, the so-called middleman used in most transactions.
In October, Russia and China agreed a currency swap worth over $20 billion, in order to increase trade and business between the two.
Earlier in April, Russian Prime Minister Dmitry Medvedev proposed setting up a similar system with Vietnam.After the Prime Minister's visit to Vietnam, Russia’s Industry and Trade Minister Denis Manturov suggested Indonesia could get a comparable deal.
The two heads of state also signed 20 agreements ranging from energy projects, economic development, agriculture, trade, military cooperation, as well as memorandums to boost environmental protection and fight drug trafficking.
Among Latin American countries, Argentina is Russia’s fourth biggest trading partner, after Brazil, Mexico, and Ecuador. Trade between Argentina in Russia was $1.4 billion in 2014, compared with nearly double that in previous years, due to reduced oil supplies from Russia. More than 84 percent of the goods Russia imports from Argentina are agricultural, such as fruit and meat.
Cristina Kirchner has been on official visit to Moscow since Tuesday.
The Argentine president met businessmen, politicians and opened a Moscow exhibition dedicated to the spiritual leader of Argentina Eva Peron. This year also marks 130 years of Russian-Argentine diplomatic relations.
Battle over Falklands
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| The Argentine government on Tuesday sued several energy and support companies that are drilling for oil near the Falkland Islands, the latest chapter of a longstanding dispute over the South Atlantic archipelago, though analysts say it will have little practical effect. The criminal case was filed in Rio Grande, Tierra del Fuego province which according to the Argentine constitution includes the Falklands and Antarctica. |
“It's an outrageous piece of bullying and threatening against the Falkland Islanders' perfect right to develop their economic resources, and Argentina need to stop this kind of behavior and start acting like a responsible member of the international community,” Hammond said in an interview with Sky News.
The suits say that exploration for hydrocarbons was being done without permission of the Argentine Secretary of Energy. If found guilty, the heads of the companies and other employees could be sentenced to five to 10 years in prison.
However, the companies have stated the have legal contract to exploit hydrocarbon resources in the Falklands. A statement from Houston by US Premier Oil said “our concession contracts are with the Falkland Islands Government.”
Even if the suits are successful, it's unlikely that any decision would go beyond the borders of Argentina.
Juan Javier Negri, an Argentine lawyer specializing in commercial international law, said the government would have “serious difficulties” carrying out any sentence because it was unlikely international bodies would implement it.
In that sense, the suits represent “more of a political gesture in the midst of escalating political rhetoric than an action with concrete effects” said political analyst Rosendo Fraga.
The Falklands dispute always strikes a nerve in Argentina, but Britain has repeatedly said the question of sovereignty and future, depends on the decision from the Islanders based on their right to self determination. In a 2013 referendum, the vast majority of Falkland Islands residents voted to remain a British territory. The Islands have a population of almost 3.000 people, according to a 2012 census.
Several U.N. resolutions have urged the two nations to negotiate. Argentina claims Britain usurped the territory by placing a naval garrison there in 1833.
The latest clash began last month, when Britain announced plans to update its military capacities protecting the Islands over the next decade arguing Argentina represents “a live threat” to Islanders. The Falklands elected government later announced that the first well of the current drilling campaign, Zebedee was an “oil and gas discovery”.
Since then, the Argentine government has repeatedly criticized Britain on defense spending and oil drilling.
During an April 3 speech, while claiming Argentina's right to the Falklands/Malvinas, President Cristina Fernandez said Great Britain should not spend “even one more British pound” protecting the Islands and instead should use the money for its poor.
Even if the suits are successful, it's unlikely that any decision would go beyond the borders of Argentina.
Juan Javier Negri, an Argentine lawyer specializing in commercial international law, said the government would have “serious difficulties” carrying out any sentence because it was unlikely international bodies would implement it.
In that sense, the suits represent “more of a political gesture in the midst of escalating political rhetoric than an action with concrete effects” said political analyst Rosendo Fraga.
The Falklands dispute always strikes a nerve in Argentina, but Britain has repeatedly said the question of sovereignty and future, depends on the decision from the Islanders based on their right to self determination. In a 2013 referendum, the vast majority of Falkland Islands residents voted to remain a British territory. The Islands have a population of almost 3.000 people, according to a 2012 census.
Several U.N. resolutions have urged the two nations to negotiate. Argentina claims Britain usurped the territory by placing a naval garrison there in 1833.
The latest clash began last month, when Britain announced plans to update its military capacities protecting the Islands over the next decade arguing Argentina represents “a live threat” to Islanders. The Falklands elected government later announced that the first well of the current drilling campaign, Zebedee was an “oil and gas discovery”.
Since then, the Argentine government has repeatedly criticized Britain on defense spending and oil drilling.
During an April 3 speech, while claiming Argentina's right to the Falklands/Malvinas, President Cristina Fernandez said Great Britain should not spend “even one more British pound” protecting the Islands and instead should use the money for its poor.
-RT/Merco Press
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