Argentina’s ‘Libertarian’ Revolution Was Brought to You by Chabad
Behind Argentine President Javier Milei’s “chainsaw economics” stands the quiet power of Eduardo Elsztain, a devout Jewish oligarch with deep ties to Israel and Wall Street.
Before his monumental victory against Sergio Massa in November 2023, Milei was an eccentric political analyst who had a flair for controversy and had sharply criticized the Argentine political establishment. Milei made a name for himself by appealing to libertarian principles and even naming his dogs after libertarian intellectual Murray Rothbard.
Before 2023, the idea of Milei becoming president of Argentina would have seemed far-fetched to casual political observers. But when one enters into a Faustian pact with Elsztain and the powerful networks of Argentina’s Jewish elite, even the most unlikely of political ambitions can suddenly materialize.
Elsztain is a prominent Argentine businessman who has been widely recognized as one of South America’s most influential Jewish leaders and business figures. Born on January 26, 1960, in Buenos Aires, Argentina, Elsztain has built a vast construction business empire while maintaining deep connections to Jewish communities worldwide and establishing significant ties to Israel.
Elsztain is the chairman and CEO of IRSA (Inversiones y Representaciones Sociedad Anónima), Argentina’s largest real estate company, which trades on both the Buenos Aires Stock Exchange and the New York Stock Exchange. His grandfather, Isaac Elsztain, a Russian Jewish immigrant who arrived in Argentina in 1917, founded IRSA in 1943.
Beyond real estate, Elsztain controls a massive agricultural empire through the agricultural company Cresud, which operates approximately 850,000 hectares of farmland across Argentina, Brazil, Bolivia, and Paraguay. He also serves as president of Banco Hipotecario, Argentina’s leading mortgage bank, and has extensive mining interests through Austral Gold Limited.
His business success has been remarkable. According to reports, his rise to prominence began in the 1990s when he received a $10 million investment from billionaire George Soros, which helped transform his grandfather’s struggling company into Argentina’s largest business empire. Contrary to popular mythology that portrays this as a chance encounter, Argentine newspaper La Nación revealed that the meeting with Soros was actually arranged through Elsztain’s contacts within Buenos Aires’s Jewish community who were responsible for opening doors to the powerful businessman.
His ascent, backed by elite networks, did not go unnoticed abroad. Israeli media frequently refer to Elsztain as “South America’s richest Jew.” With respect to his connections to broader Jewry, Elsztain’s relationship with Argentina’s Jewish community runs deep and spans several decades. He is the President of Chabad Argentina and serves as Chairman of the World Jewish Congress Governing Board. His involvement with Jewish institutions began in the late 1970s when his parents participated in Kabbalah classes given by Rabbi Avraham Yosef Polichenco, which led the family to become closer to Chabad.
Chabad—also known as Lubavitch, Habad, or Chabad-Lubavitch—is a major branch of Hasidic Judaism distinguished by its intellectual approach to Jewish mysticism and its expansive global network. The movement’s name, Chabad, is an acronym for the Hebrew words Choḥmah (חָכְמָה, “wisdom”), Binah (בִּינָה, “understanding”), and Da’at (דַּעַת, “knowledge”), and has become a powerful vehicle for Jewish influence in the United States, Russia, and Argentina. Elsztain has been a crucial partner for Chabad activities not only in Argentina but globally, supporting everything from educational programs to social services. Elsztain was a follower of the Lubavitcher Rebbe, Rabbi Menachem Mendel Schneerson. In a famous story, when Elsztain asked the Rebbe for advice about investing $15 million in the stock market in 1991, the Rebbe advised him to focus on real estate instead—advice that proved to be extraordinarily prescient and profitable.
Widely recognized as a key donor to the Taglit-Birthright project, which arranges educational trips to Israel for young English-speaking Jews, Elsztain also holds the title of president of Taglit-Birthright Israel in Argentina. That said, Elsztain’s most significant connection to Israel came through his major investment in IDB Holding Corp., one of Israel’s largest conglomerates. Beginning in 2012, he invested over $100 million to rescue the struggling company from Israeli businessman Nochi Dankner.
Through his control of IDB, Elsztain held significant ownership in several major Israeli corporations. These included Cellcom, the country’s largest mobile phone operator, as well as Shufersal (also known as Super-Sol), one of Israel’s leading supermarket chains. Elsztain’s investment in IDB was described as his “first major investment in Israel.” For the Jewish magnate, investing in Israel marked a personal turning point; as he put it, “The best part of my life began when I invested in Israel.”
Despite facing significant challenges and eventually losing control of IDB in 2020, Elsztain maintained his commitment to Israel, saying he invests “for my great-grandchildren” and views Israel as “a wonderful place to invest.”
What’s particularly notable, however, is where Milei and Elsztain’s trajectories converge. Elsztain and Milei first met at the Llao Llao Forum in April 2023, an annual gathering of Argentina’s business elite hosted by Elsztain at his luxury hotel in Bariloche. This meeting of the “Círculo Rojo” (Red Circle) proved to be the starting point of what would become an intimate relationship. Chilean newspaper La Tercera reported that the two formed such a strong bond that the businessman is now considered the president’s closest associate.
Most significantly, Elsztain served as a key spiritual link between Milei and the Jewish community, especially the Orthodox Chabad Lubavitch movement. Multiple sources confirm that Elsztain was the key figure who introduced Milei to the Chabad community. As one source explained to the Argentine digital news website La Política Online: “Eduardo is the key to the Chabad in Argentina.” This connection was facilitated through Rabbi Tzvi Grunblatt, director of Chabad Argentina, who reportedly “connected [Milei] with some big businessmen,” including Elsztain.
Elsztain has continued to offer Milei key platforms to engage with Argentina’s business elite. One notable example was the 2024 Llao Llao Forum, where Elsztain hosted Milei as a featured speaker before an audience of top CEOs.
Elsztain’s political activities have been complicated by his involvement in several high-profile international financial scandals. In the 2016 Panama Papers, he was named as operating offshore companies in the British Virgin Islands and other tax havens during the 1990s. These entities were reportedly used for Venezuelan real estate investments and were managed in partnership with his then-business associate Marcelo Mindlin.
The following year, the 2017 Paradise Papers further exposed Elsztain’s use of offshore structures. These included Latin America Capital Partners II LP in Bermuda, a fund connected to George Soros, as well as Elsztain Realty Partners Master Fund LP and Dolphin Global Fund, the latter based in the Isle of Man and holding $400 million in assets. These offshore dealings also revealed links to Luis Caputo, who served as Finance Minister under President Mauricio Macri and now holds the position of Economy Minister in Javier Milei’s administration.
Behind the libertarian theatrics and economic reform lies a deeper arrangement—one that speaks less to populist revolt and more to elite consolidation. In Javier Milei’s Argentina, it seems certain doors only open if you know the right rabbi.