Tensions Heat Up, As Spain Withdraws Ambassador To Argentina After Threat To Nationalize YPF

Argentina Cristina Kirchner

Photo: Casa Rosada

Yesterday we wrote about Argentina’s threat to nationalize publicly listed energy company YPF, whose stock prompted fell 15%+ on the news before being halted in the afternoon.YPF is owned in large part by Spanish firm Repsol, and so Spain is freaking out.

According to the FT, Spain has gone so far as to pull its ambassador to Argentina.

As FT notes, there were already expectations that Repsol would lose much of its stake, but the estimate was 57%, not 100%.

Following an emergency government meeting, Spain’s foreign minister José Manuel Garcia-Margallo said Madrid was considering measures against Argentina, which would be announced in the coming days.

“This has broken the cordial climate that existed between Spain and Argentina,” he said. “Spain had worked with Argentina during its hardest hours.”

For more on what happened yesterday, see here >

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