Spain will respond with the most appropriate move to Argentina’s announcement that they will send a bill to Congress that will allow the expropriation of the subsidiary of Repsol YPF. This statement was released on Monday by the organization’s secretary-general, Maria Dolores de Cospedal.
“The government has to decide what answer to give, but I doubt it won’t be the most appropriate response to the defense of national interests and of Spanish interests. The response was complete enough to defend the interest of Spanish companies in Argentina,” said Cospedal during the press conference.
Minutes before the announcement, Argentina president Cristina Fernandez announced a bill that allows the state to expropriate Argentina in most of YPF, which accuses the continuing fall in oil and gas production in the country.
A Visit from EC Officials
The European Commission said on Monday that the Argentinian government was asked solutions for the case. It has been made public knowledge that Argentina plans to nationalize the oil company, YPF.
“The EC, through the delegation of the European Union (EU) in Argentina has expressed concern by means of a contact between our CEO and a member of the Cabinet of Mrs. Cristina Fernandez Kirchner,” said Community spokesman Olivier Bailly.
“Argentina must comply with its international commitments in the protection of foreign investors in its territory,” he said.
The spokesman said that any decision must ensure that no damage to the work environment and economic relations between the EU and the South American country.
A group of officials from the EC will arrive in Buenos Aires next Thursday to discuss matters with Argentine Deputy Foreign Minister Eduardo Zuaín.
“We are very aware of the situation. We are here to protect foreign investments made by member countries or by companies headquartered in Europe,” said Bailly.
Shares of Argentina’s oil were suspended on Monday in the Buenos Aires Stock Exchange after the announcement of the government’s expropriation of 51% of the company.
YPF shares, the Spanish company controlled by Repsol-YPF, lost 2.44% or 116 pesos before the suspension.
“The sum of all evil is consummated by nationalization and this changes the trend outright action,” said analyst Marcelo Paccione of the ConsultCapital brokerage.
In New York. YPF shares tumbled down by 15.17% at 16:26 GMT.