What's the deal about Angola anyway?

[El chabon]

And how is it again they are going to pay for it?

Shipments of soja, grains and maize

 

[ElQueso]

Shipments of soja, grains and maize

Yeah, but I'm having a hard time understanding how Angola is going to cut out all of its partners who finance the expensive exploration and production, selling gas to the US and other countries for a profit, wherein they can turn around and buy their own food as needed with their profits, as opposed to accepting shipments of food from Argentina in exchange for gas and/or oil.

 

[Dublin2BuenosAires]

And how is it again they are going to pay for it?

100m dollar credit line already opened by Argentina to Angola...I'm pretty sure you can work out the intent.

Note, goverments don't pay in advance. The world works on credit, in this case, bilateral credit.

next...

 

[Dublin2BuenosAires]

Yeah, but I'm having a hard time understanding how Angola is going to cut out all of its parnters who finance the expensive exploration and production, selling gas to the US and other countries for a profit, wherein they can turn around and buy their own food as needed, as opposed to accepting shipments of food from Argentina in exchange for gas and/or oil.

Bilateral trade agreements, fixed prices, guaranteed supplies. Preferential status goes a long way.

Really, there is so many valid criticisms we can make of Kirchner and co, there isn't much to make a noise about here.

 

[Dublin2BuenosAires]

Maybe because it's an international paria? It has an dictator for 32 years? It abuses human rights? You made human rights as your administration backbone?

It's pretty difficult in international terms to use human rights as a trade restriction. You can argue against most of the world in those terms. I would struggle to find a country with a clean bill of health in that respect.

Also, you can argue that trade is an enabler for improving human rights although it would be very strange of the trade restrictive Argentine govt to take this position !

 

[LostinBA]

100m dollar credit line already opened by Argentina to Angola...I'm pretty sure you can work out the intent.

Note, goverments don't pay in advance. The world works on credit, in this case, bilateral credit.

next...

Ok, maybe Argentina will buy their LNG with USD and not some bartering system for commodities. How is that different from what they can do now with any other LNG suppliers? And if like Reuters say, Angola's state oil company with all of it's global supermajor oil company partners can get higher prices selling LNG to the USA and Asia, why would they drop the price for Argentina? Out of good will? Compassion? Shared Ideology, love for Che? Not a chance.

So maybe the only play here is that no other countries are dumb enough to extend anymore credit of any nature to Argentina. The Angolans might do this and will charge the same premium prices that they would to higher paying clients in Asia plus enough of a markup for the Argentine politicians planned bribes and wrap them together in the price (plus maybe something for their own currupt ruling family). CFK can claim political success if the LNG arrives and her stupid supporters and general population will never be the wiser to the inbedded bribes (possibly hundreds of millions of USD of their money) that will be secretly paid to her Swiss or perhaps Angolan accounts.

I believe this is her strategy. All the chickens, farm equipment and socks they brought were nothing more than a ruse to detract attention from the big payout they're setting up on the LNG side.

 

[ElQueso]

And all of that because they screwed over their own chances to be an oil and gas producer due to idiotic policies...but it sure gives Cristina et al a good chance to steal some more money.

 

[El chabon]

It's pretty difficult in international terms to use human rights as a trade restriction. You can argue against most of the world in those terms. I would struggle to find a country with a clean bill of health in that respect.

Also, you can argue that trade is an enabler for improving human rights although it would be very strange of the trade restrictive Argentine govt to take this position !

However HR is the backbone of the administration of both Kirchner as Cristina with many former guerilleros in the government.

 

[El chabon]

And all of that because they screwed over their own chances to be an oil and gas producer due to idiotic policies...

The were untill recently

 

[El chabon]

Ok, maybe Argentina will buy their LNG with USD and not some bartering system for commodities. How is that different from what they can do now with any other LNG suppliers? And if like Reuters say, Angola's state oil company with all of it's global supermajor oil company partners can get higher prices selling LNG to the USA and Asia, why would they drop the price for Argentina? Out of good will? Compassion? Shared Ideology, love for Che? Not a chance.

So maybe the only play here is that no other countries are dumb enough to extend anymore credit of any nature to Argentina. The Angolans might do this and will charge the same premium prices that they would to higher paying clients in Asia plus enough of a markup for the Argentine politicians planned bribes and wrap them together in the price (plus maybe something for their own currupt ruling family). CFK can claim political success if the LNG arrives and her stupid supporters and general population will never be the wiser to the inbedded bribes (possibly hundreds of millions of USD of their money) that will be secretly paid to her Swiss or perhaps Angolan accounts.

I believe this is her strategy. All the chickens, farm equipment and socks they brought were nothing more than a ruse to detract attention from the big payout they're setting up on the LNG side.

It all depends how easy and cheap Angola can get food-stuffs. Agriculture futures trade on major markets, it isn't really that hard to make that business especially if Argentina supplies Angola with either industrial products or technology transfers.

I sure Cristina will make Angolan imports look like its YPF production, Angola sure wouldnt care if they do.