Brussels, 19/04/2012 (Agence Europe) - There is now a new development in the Spanish-Argentinean spat following the seizure of the Spanish oil company Repsol's subsidiary YPF, proposed by the Argentinean president Cristina Kirchner on 16 April. Government sources quoted by the international media suggest that Spain will ask the EU to take the matter to the WTO with a view to opening proceedings against Argentina, following the president's decision to nationalise 51% of YPF. Madrid is also threatening both economic and diplomatic reprisals.
Chief Executivre of the Spanish oil company Repsol Antonio Brufau warned the Argentinean government on 18 April that it would have to pay “ a fair price”, put at more than $10 billion in compensation for the expropriation of its subsidiary YPF. He estimated that the 57.4% share Repsol had in YPF was worth $10.5 billion (€8 billion). Brufau stated that he would request compensation through international arbitration.
The European Commission and the Danish Presidency of the Council ratcheted up the pressure on Wednesday and denounced Argentineans failure to respect its obligations contained in its investment treaties. Danish Minister for European Affairs Nicolai Wammen denounced the “unacceptable” decision, following, “a series of restrictions on international trade recently introduced by Argentina”.
Headed by the EU and the US, more than 20 WTO countries from both the developed and developing world complained at the beginning of April in Geneva about the import barriers introduced by Argentina since 2008, particularly the extension of the list of products subject to import licences. (EH/transl.fl)