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Seizure of oil company by Argentina is unjustifiable
The nationalisation of leading Spanish-controlled YPF in Argentina is 'unjustified' says Spanish Prime Minister Mariano Rajoy.
Spanish PM said the move by Argentinas President to expropriate Repsols controlling stake in YPF could not be economically justified
The nationalisation by Argentina of its Spanish-controlled leading energy company was unjustifiable according to Spain’s Prime Minister Mariano Rajoy who will work to halt the takeover.
Rajoy said that the takeover would spoil the good relations that existed between Argentina and its top trading partner, Spain.
The Spanish prime minister said that the move by Argentina’s President Cristina Fernandez to expropriate Repsol’s controlling stake in YPF could not be justified economically.
Spain-based Repsol’s majority stake in YPF was considered to be a ‘public good’ according to Fernandez and said it was to be expropriated.
Two of her top political appointees were put in charge of the company forcing executives to leave their offices in Buenos Aires.
A request to quickly approve the re-nationalisation of YPF was put forward by Fernandez to her majority in Congress after the company had been state-owned for years before its privatisation in the 1990s.
Antonio Brufau, Repsol’s president, accused the Argentine President of trying to suppress increasing conflict at home while attempting to boost her popularity with the ‘unlawful bid’ which resulted in the decrease of the group’s shares by more than 7%.
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Mariano Rajoy can say what he likes. Argentina is right to do it. Natural resources should and must be for the benefit of the citizens of the countries where they are found and not for the benefit of foreign companies and their shareholders. Nations must again start re-nationalizing whatever has been sold to foreigners.
