Brussels, 16/05/2012 (Agence Europe) - Following Argentina's seizure of control, in April, of its subsidiary YPF, Spanish oil company Repsol is about to take its first judicial step in calling for compensation at the International Centre for Settlement of Investment Disputes (ICSID), an institution of the World Bank. Repsol is seeking €10 billion.
In mid-April, Argentinean President Cristina Kirchner decided on a 51% nationalisation of local oil company YPF, until then a subsidiary of Repsol, which held a majority 57.4% stake. Kirchner's decision was approved by the Argentinean congress at the end of last month. Buenos Aires accused the Spanish company of under-investment after YPF was privatised in the 1990s.
By way of retaliation, Spain threatened to adopt a measure cutting its imports of biodiesel from Argentina. The European Commission is also planning to respond to the seizure of YPF. It could suspend the trade preferences granted to Argentina through the EU's generalised system of preferences. (EH/transl.rt)