Cristina nationalizes YPF; Spain promises retaliation.
The company was privatized in the past, in a bidding process won by the Spanish company Repsol; now, according to the message from the Argentine president to Congress, 51% of its shares will be reclaimed by the State and 49% will be allocated to the provinces; Spain's response is expected to be strong.
247 with Agência Brasil - The president of Argentina, Cristina Kirchner, has decided to send a proposal to the country's National Congress declaring the exploration of oil and its derivatives to be in the public interest.
The government announced that the text establishes the expropriation of shares in the company YPF, a subsidiary of the Spanish company Repsol in the country. It was established that 51% of the company's shares will belong to the State and the remaining 49% to the provinces.
According to the president, the goal is to make the country self-sufficient. Cristina Kirchner stated that, as things stand, Argentina "risks becoming unviable" due to current business policies in the region.
Cristina Kirchner indirectly referred to the YPF company. According to the president, the proposal submitted to Parliament mandates the "equitable and sustainable development of the regions" of Argentina. The text stipulates that the federal, state, and municipal governments will work in partnership to make the changes possible.
Argentine authorities are criticizing YPF for reducing its investments in the country, which would force Argentina to increase its hydrocarbon imports. Repsol rejected the criticism, highlighted its goal of investing US$3,4 billion in the country by December, and called for the continuation of negotiations.
The Spanish government criticized Cristina Kirchner's decision and stated that it will adopt clear and forceful measures in defense of Repsol's interests and those of all Spanish companies abroad. "Any aggression violating Repsol's principle of legal security will be taken as an aggression against Spain, which will take the actions it deems necessary and will request the support it needs from its partners and allies," said the Spanish Minister of Foreign Affairs, José Manuel García-Margallo.