The conflict between the federal government and the province of Chubut over the distribution of funds continues.

In a TV interview, president Javier Milei accused Chubut Governor Ignacio Torres of "not knowing how to read a contract".

Torres, for his part, ratified his threat to interrupt oil supply if his district does not receive by Wednesday an amount equivalent to US$ 15 million.

Recently, the Casa Rosada cut funds sent to the provinces to pay part of the teachers' salaries and to subsidize public transportation, among other cuts.

In addition, president Milei explained this weekend that Chubut had contracted a loan presenting as collateral the co-participation funds.

This is income from the collection of national taxes that Buenos Aires distributes among the provinces.

When depositing this money to Chubut, the Nation applied a discount for the debt and the province "receives the remainder", e

plained Mr Milei.

He also stated that he will resort to the courts if Torres cuts the supply of crude oil, most of which in Argentina comes from the Patagonia region.

On the other hand, according to newspaper Ámbito Financiero, Chubut government will denounce the National Government before the Courts for "illegal holding of co-participation".

It is worth mentioning that Torres received these days the support of almost all the other governors in his dispute with the Nation.

"On Wednesday not a drop of oil will come out if they do not respect the provinces once and for all and take their foot off our backs", said the Chubut leader on TV.