Photo: AP Images
Shares of energy company YPF, which might be nationalized by Argentina, have fallen over 20 per cent as it resumed trading.Earlier this week we said that after months of finger-pointing Argentina’s president Cristina Fernández de Kirchner floated her draft bill titled “The Recovery of Sovereignty over Hydrocarbons” which if passed would see the Argentinian government nationalize YPF.
In Argentina, senator Anibal Fernandez said he expects the YPF expropriation draft bill to be cleared for debate by the Upper Houses committees that are currently discussing it, so it can hit the Lower House for discussion next week.
Argentina has faced international backlash for trying to expropriate Repsol’s stake in YPF and angered Spain, it’s largest foreign investor.
British foreign secretary William Hague has also backed Spain saying: [the expropriation] goes against all the commitments Argentina has made in the G20 to promote transparency and reduce protectionism,” according to Buenos Aires Herald. Italian prime minister Mario Monti also criticised Argentina and said the move could damage relations between Rome and Argentina.
Shares are now off nearly 30%
UPDATE (14:58 ET)
Bloomberg is reporting that senator Anibal Fernandez said that the government plans to take control of Repsol’s stake in YPF. And they will vote on the bill on April 25.