Argentina in firing line after YPF swoop

By GARETH CHETWYND Rio de Janeiro

 20 April 2012 05:43 GMT

ARGENTINA is likely to become the target of international lawsuits after President Cristina de Fernandez Kirchner launched the unilateral nationalisation of the local unit of Spain’s Repsol YPF this week.

Kirchner unveiled an expropriation bill in a televised ceremony held at the presidential palace, where supporters frequently interrupted the proceedings by chanting nationalist slogans.

The bill proposed the expropriation of Repsol’s YPF stock in order to give the Argentine nation a 51% controlling stake in the company.

Repsol held 57.4% of YPF equity before the measures, which also included immediate intervention in the local company, and the expulsion of Repsol managers.

Kirchner said the measures would allow Argentina to recover control of a “vital” national interest and accused Repsol of siphoning off profits at…

Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?

Login

Upstream share price index