There are potentially major financial ramifications to both Spain and Argentina from the decision by the South American country to re-nationalise Repsol subsidiary YPF as Madrid threatened swift economic retaliation.
Last year Spain imported almost 1.8 billion euros worth of Argentine products.
Argentina’s imports from Spain totaled 824 million euros.
Spain is the largest foreign investor there.
Energy firms Repsol, Endesa and Gas Natural are big players, though less so than in the past.
Banks, such as Banco Santander and BBVA, have recently boosted their investments, along with Telecoms and technology firms like Telefonica and Indra. They are all seeking growth in Argentina which is not available in their mature – and recession hit -European markets.
Spanish investments totaled 17.1 billion euros in 2009 – the last year for which figures are available.
In Spain, investors did not seem too worried about corporate consequences of the Repsol affair.
The main Madrid share index saw its third biggest gain of the year on Tuesday.
Repsol fell 6.06 percent, but Banco Santander, BBVA and Telefonica all enjoyed substantial gains.