Brussels, 26/04/2012 (Agence Europe) - On Thursday 26 April, Argentina's Senate adopted by 63 votes to three the Bill providing for nationalisation of YPF, the Argentinean subsidiary of the Spanish oil company Repsol.
To take effect, the YPF nationalisation Bill has still to be voted through by the lower House of Argentina's parliament next week. It includes YPF Gas which, also under Repsol control, distributes butane and propane gas. The president of Argentina, Cristina Fernandez, whose party holds a majority in both Houses, last week unveiled her plan to nationalise 51% of YPF, the country's leading oil company, reproaching Repsol for under-investing after it was privatised in the 1990s. Until now, Repsol held a 57.4% stake in its Argentinean subsidiary.
The initiative taken by the Argentinean government, which comes in addition to a series of restrictive measures taken by Argentina on trade since 2008, has been generally criticised by the EU. In Council, member states gave their support to Spain. At the European Parliament, a resolution adopted at the end of last week denounced what it called a “unilateral and arbitrary” decision by Buenos Aires, disrespectful of the bilateral agreement on investment between Argentina and Europe. It called on the EU to consider retaliatory measures against its Latin-American partner. The European Commission, for its part, is preparing Europe's response to Argentinean protectionism. In a letter addressed to Argentina's Trade Minister Hector Timerman on 19 April (see EUROPE N.10600), Commissioner De Gucht denounced the series of restrictive measures on trade introduced by Argentina, to which has been added the expropriation of the oil company Repsol, warning that the EU “keeps all options open” to address the matter at both bilateral and multilateral levels. Referral by the EU to the WTO, supported by other developed countries, could be initiated in coming weeks. (EH/transl.jl)