Argentina confirmed on Monday it would seize the country’s biggest oil company YPF which is currently controlled by Spanish energy giant Repsol.
Officials said the government would send a bill to Congress and take a 51 percent stake in what been described as “the public interest”.
The decision by President Cristina Fernandez looks
likely to force a head-on confrontation with Spain. Madrid has warned the move would turn Argentina into “an international pariah”.
Buenos Aires has been pushing YPF to raise production to reduce the burden of fuel imports on the Argentinian economy.
A plan by Repsol, which has a near 60 percent stake in YPF, to boost investment in the company was rejected as inadequate.
YPF generates about 25 percent of Repsol’s operating profits.
Shares in YPF on Wall Street dropped nearly 20 percent after the announcement.
Copyright © 2014 euronewsMore about:
- 1Caught on camera – children drugged and beaten in Romanian kindergarten
- 2Scientists baffled by two new holes discovered in Siberia
- 3Russia defiant in face of tough EU-US sanctions
- 4#ن: How an Arabic letter was reclaimed to support Iraq’s persecuted Christians
- 5Gaza: Deaths at Jebalya school after Israeli strike
- 1#ن: How an Arabic letter was reclaimed to support Iraq’s persecuted Christians
- 2Air Algerie plane ‘crashes’ over Sahara
- 3Eastern Ukrainians ‘hate Russian-led guerrillas’ — Arseniy Yatsenyuk
- 4Ukraine: ‘Disappointment’ at Yatsenyuk resignation
- 5Caught on camera – children drugged and beaten in Romanian kindergarten
Wires > News
- 17:16 CET EU relations to be put to Swiss voters again, president says
- 16:45 CET Sierra Leone declares emergency as Ebola death toll hits 729
- 16:38 CET U.S. says hopeful of WTO deal with India only hours before deadline
- 16:33 CET Turks abroad begin voting in landmark presidential election
- 16:19 CET Quakes strike Myanmar, India’s Andaman Islands; no tsunami warning
- 15:09 CET Greek court ruling on migrant shootings causes outrage
- 14:48 CET Stop-start Afghan vote audit gets green light, but troubles remain
- 14:32 CET Ukraine blocks premier’s resignation, backs laws