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Argentina voted 207-32 in favour of expropriating 51 per cent of the shares of Repsol YPF.Argentina’s Lower House of Congress resumed its debate of the government-backed YPF expropriation bill today. The bill was expected to pass with a wide margin.
Argentine president Cristina Fernandez de Kirchner who moved to expropriate shares of YPF and YPF Gas has previously said the company failed to invest and develop domestic oil fields.
Argentina’s oil imports surged 110 per cent last year, and the country’s energy deficit is expected to rise to $7 billion this year.
Earlier today the Buenos Aires Herald quoted Fernandez saying YPF would be a big challenge for Argentina:
“We need YPF to be aligned with national interests. It is a lie that the interests of a private company cannot be in line with those of a country. This will be a great challenge for us.”
Once the bill is approved the focus will shift to how much the government will pay Repsol for the 51 per cent stake. Repsol is looking to get $10.5 billion for its stake in the company.
YPF shares are down nearly 60 per cent year-to-date.
More to come…