Wednesday 18 April 2012 - 07:38

Argentine president stands her ground in dispute with Spain over YPF

Story Code : 154374
Argentine president stands her ground in dispute with Spain over YPF
The Argentine Congress is currently examining a proposal for legislation that would expropriate a 51% share of the company.

In response, the Spanish government announced that it could retaliate against Argentina economically.

"The government strenuously condemns the arbitrary decision by the Argentine government... It breaks the climate of cordiality and friendship that traditionally have marked relations between Argentina and Spain," Spanish Foreign Minister Jose Manuel Garcia Margallo said on Tuesday.

But the Argentine president was not fazed by the threats.

"This president isn't going to respond to any threats... because I represent the Argentine people... I'm the head of state, not a thug," Fernandez said on Tuesday.

On Monday, Fernandez announced the decision to reclaim YPF, which was formerly a state-owned Argentine oil company, at a meeting with her cabinet and provincial governors. She said that Argentina had to take back the oil company since it is the only nation in Latin America "that does not manage its natural resources."

The Spanish energy company Repsol purchased YPF in 1999. With a market value of $10.6 billion, YPF accounts for about 25% of Repsol’s profits and 60% of its production.

Repsol President Antonio Brufau said on Tuesday that the company would take legal action against Argentina, seeking compensation of about $10 billion.