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Argentina’s lower house is expected to debate the YPF expropriation bill drafted by its president Cristina Fernandez de Kirchner on May 3, and the bill is expected to pass by a wide margin, according to the Buenos Aires Herald.
The Senate will vote on the bill this Wednesday, and the lower house is expected to begin mulling over it right after.Argentina hopes to expropriate 51 per cent of Repsol’s 57.43 per cent stake in YPF, has refused to pay what Repsol is asking for, and has faced tremendous international backlash for its move. Many of YPF’s board of directors were forced to leave last week soon after the president made her announcement, and were replaced by government representatives.
Spain’s foreign minister José Manuel García-Margallo told Buenos Aires Herald:
“We are not challenging Argentina’s right to bet on the sovereignty of its energy resources, which for me and being in the 21st century is an error, but we challenge the fact of they expropriating a company without paying to its shareholders.”
Shares of YPF are down 3 per cent in pre-market trading and are down nearly 58 per cent year-to-date.