YPF nationalization bill does not contemplate compensations, says Kirchnerite Senator
Senator from the Argentine ruling majority and former cabinet chief, Aníbal Fernández assured that the government “will pay the real price for the expropriation of YPF and not what Repsol’s chairman (Antonio Brufau) wants.”
Fernández went further and accused Brufau of being “the main responsible for the stripping of assets from the company”.
The former cabinet chief also explained that the compensation plan is not contemplated in the expropriation draft bill that will be debated this Wednesday at the Senate since the company’s valuation “will be conducted by the technical staff of Argentina’s Valuation Court.”
“No matter how hard they try to demonstrate the alleged investments (Repsol) made, they’ve done none. The exploration was null as well, while the oil and gas production dropped significantly. We lost oil and gas reserves, the company duplicated its debt while the share dividends paid were outrageous”, said Senator Fernandez.
Finally he argued that “neither Spain nor the European Union should take reprisals against Argentina, and/or question Argentina’s legal security without noting that the possibility of expropriating a company is contemplated in the National Constitution, and as a matter of fact it’s also included in the Spanish Constitution”.
YPF expropriation bill which President Fernández de Kirchner sent to Congress last week is expected to finally be voted (and passed by a wide margin) by the Lower House on May 3.
The Lower House is scheduled to begin the debate right after the Senate votes on the bill next Wednesday. The bill is expected to be preliminary approved by a wide margin.
No Argentine cabinet members are expected to be present during the Lower House, unlike last week during the debate in the Senate when Federal Planning Minister Julio De Vido and Deputy Economy Minister Axel Kicillof where both present on the floor.
Kirchnerite sources in the Lower House confirmed that lawmakers will begin debating the bill next Thursday in a plenary meeting including several congressional committees.
The market value of YPF has plummeted to below 10 billion dollars from 18 billion a few months ago before the dispute and seizure of the company from Repsol by the Argentine government.
Senator Fernandez and Deputy Minister Kicillof have said publicly on more than one occasion that to whatever compensation is decided, must be subtracted the lack of upkeep and maintenance by Repsol as well as “environmental damage”.
Kicillof has stated that according to Repsol’s books the Spanish company was no longer interested in Argentina and was investing all its resources and efforts in other countries to the detriment of Argentina.
Suggested Stories
-
May 21st 2013
Falkland Islands: it’s a three-side debate; Argentina must recognize Islanders right to decide their future
-
May 16th 2013
Chevron agrees to invest 1.5bn dollars in developing YPF shale field in Patagonia
-
May 15th 2013
Spain no longer discusses Argentina’s ‘sovereign decision to seek energy sector control”
-
May 20th 2013
Iran enforces memorandum with Argentina to look into AMIA terrorist bombing
29 comments Feed
Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Thank you.
“Argentina’s legal security without noting that the possibility of expropriating a company is contemplated in the National Constitution, and as a matter of fact it’s also included in the Spanish Constitution”.
Sure mate and the Spanish have used pretty well that article 30 years ago with RUMA SA without paying a single $ to shareholders.
www.elmundo.es/mundodinero/2010/01/22/economia/1264190214.html
If was legal for Spain is legal for Argentina, Fair is fair
I am British and I agree that Argentina should, if they want take control of thier own assessts. I just disagree with the way it has be done. It could have been dealt with much easier and better. The Argentine government treated YPF and Repsol with disdain. Forcing down the value of the shares so that it would be cheaper to compensate.
Then again. I am slowly learning the politics of SA and its history. I am no way an expert in this. Just giving my opinion.
Also that was 30 years ago where things were quite different.
Or we could take a different tact, given Argentina invaded the Falkland's during the same era then its only fair Spain uses its large navy to forcibly take assets from Argentina now. Especially since Argentina used to belong to Spain, its just re-taking what it believes it owns in the same way Argentina has been trying to re-take the Falklands.
After all, Fair is fair and all that........
YPF was sold in the first place as it was a failed organisation and achieved the quite difficult accolade of being an oil company sat on huge reserves and managing to consistently lose money.
Selling it was arguably one of the only reasonable decisions the government has made in recent times.
The oil is a national asset, YPF is most certainly not, it is a private company that does not belong to the Argentine government.
If Argentina wanted to do it the right way and not steal assets it would have withdrawn the oil field licenses and invited another company or created a new company to extract the oil.
Very different to the Repsol/YPF situation... where it's the Argentine government with KFC at it's head who are the thieves and crooks.
The thinking man wouldn't have approached Argtardia with a sh!tty stick, unless they were managing a weird fund that required massive risk and no returns.
Either way, nationalisation should involve the prior agreed purchase of the company at market values. Just taking something, because you like it, is petty theft. In this case it's widespread institutionalised theft. In other cases it's territorial theft.
Apparently the morality of the situation pays no part in the thoughts of the Argentine.
It shows the reaction of the “Argentinian people” to the underhand and unprovoked attack on and invasion of a small island group 400 miles away. An island group, incidentally, that has NEVER been legally theirs. And if you keep up, you will note that they haven't changed to any noticeable degree in the last 30 years. The best that “the Argentinian people” deserve is compulsory sterilisation followed by what they most like to hand out - extermination. To support that I point to the illustration on one of their “currency” notes. They actually continue to celebrate their 'Conquest of the Desert' and extermination of the native peoples every day.
I believe that many people (Brits, Falkland Islanders and the like) come here in order to make it clear that the events of 30 years ago were not down to a small group of military leaders then governing the country, but to 90% or more of the argie population. And they haven't changed. They are still into forcibly seizing anything their greedy little hearts desire. Irrespective of legality, morality, justification or anything else a proper human being would consider.
I feel that many people who have watched them for a while, and especially those who have had to experience their attitudes and actions, would not be completely averse to them starting something again so that they could really be given what they deserve. The only people in the area that deserve something better are the few remaining native people. I do not count 'mestizos' as native people.
I agree with Xect but with a caveat. In order for something to be a 'national asset' you first have to have a 'nation'. Argies aren't a 'nation'. They are the descendents of invaders, conquerors, murderers, genocides and thieves. And they try to live up to and continue their abominable history.
I enjoyed there company and were normal every day people. When we did discuss the falklands it was apparent that a lot of the population can be easily persuaded and moved into a nationalistic frenzy. At the time and like now it is easy for the current govenments to use properganda to gain national sentiment and disdain for an old enemy i.e. Britain. This however is not shared by all or even if it has they admitted that they were taken by it at the time.
So yes I feel they do deserve better. I would the majority of people are ordinary folk who just want to make a living adn get by. Just like me. To suggest a extermination of an entire population you have become worse than Kirchner. It puts you up there with Pol Pot, Hitler and the likes.
Trust me when I say. No one wants to hurt innocent civilians. If they do, then they are horrible people that should look in the mirror and try and find some humunity. Because you sir, by the sounds of it, have none.
The partial nationalisation of YPF is similar to the nationalisation of the banks made by UK in 2008 and 2009 or those made in US but in English.
info from the books made by the Spanish, shows Repsol was damaging Arg. Interests by driving the company to a slowly collapse, jeopardising the entire domestic oil market. As YPF was the major player in the field.
Clear is the fact that the company reported 1.5bn in earnings and distributed 3bn in dividend by creating artificial debt over the company.
In any part of the world this is called fraud from any point of view.
This is not new coming from the Spanish fancy way of doing business.
“I just disagree with the way it has be done” The board was several times advised over this situation there are even public statement about this issue. They just didn’t care like your CEO bankers don’t care about the bonus policy in UK.
When a rumour from a newspaper took place about that the Arg. govt, could take measures over the company, the minister José Manuel Soria from Spanish govt. threat Argentina saying that any action by AR go will have consequences as he was the King of the world.
www.youtube.com/watch?v=pFYxdK0GNXs
I guess they got the message now about who is in position to threat who. Who do you thing is scare now about the consequences? The Arg. govt. can nationalise Telefonica, Spanish banks and a lot of Spanish companies that will put Spain belly up. And you know what?
“I am British” If you are British I will advise you to have an eye over your airports and Santander blank sorry I mean bank (Blank check come to my mind), before they left you belly up.
While Ana Botin, daughter of Emilio Botín owner of Santander bank, reported in UK 40% down in profits She cashed a succulent bonus of 4bn Quids. Is not amazing how these people made money while companies go into red?
www.independent.co.uk/news/business/news/santander-uk-boss-pockets-41m-despite-ppi-charge-7575819.html
We all understand that Spanish companies haven't got a great record over investment into British airports, nor particularly with their banking, but it's unthinkable that you would simply expropriate them, without the typical judicial process that supports taking over the resource again.
Yet again, you have to consider what path you are going down by 'taking' banks, phone companies and oil companies. You're making your country unsuitable for investment and you're basically driving yourself into a socialist system where it's all centrally governed.
Is this what you really want? 1930s Russia? North Korea?
“The partial nationalisation of YPF is similar to the nationalisation of the banks made by UK in 2008 and 2009 or those made in US but in English.”
Eh? The UK nationalised banks to save them, not for the governments personal gain, in fact nationalising backs cost the UK government billions!
Not to mention unlike YPF didn't was taken by force as opposed to the UK banks asking the Government to save them.
You absolutely couldn't of picked a more different set of events!
www.gregpalast.com/the-globalizer-who-came-in-from-the-cold/
If you want to support Argentina's blatant and shameless theft of a foreign asset then by all means embarrass yourself like the Argentine government has!
And then to top it all he posts a link that has zero to do with the subject......
Apr 24th, 2012 - 04:48 pm
Of course PH supports “Argentina's blatant and shameless theft of a foreign asset ” without any embarrassment, he works for the damned government.
Instead of criticising others better read the list of compulsory expropriations made by UK.
UK didn’t pay bankers yet. So you lovely UK is not a good example of repeat for the rule of law and private property.
@Xect
This is your point of view and opinion but not the shareholder opinions they are still claiming to be paid.
The bank is not that wasn’t profitable, they suffer a run and in current Fractional Banking System, any profitable bank suffering a run due to bad economy policy by govt. can end belly up.
So the normal procedure is to assist the bank throughout the central bank to provide liquidity if that is not enough the bank goes into liquidation. The rest of the banks are called to make an offer over the assets of the bank. Shareholders get one of the offers and none feel hurt (is called capitalism).
Instead your UK Marxist govt. expropriated the banks without given that alternative to private owners.
They are right to claim to UK govt. a fair compensation for all assets sized and billions on damages.
@ reality check
“The banks were not nationalised. They are independent, the UK government is the largest share holder in some of the banks, that's not the same as nationalising them.”
The Arg. State also was part of the board of YPF with power of veto thanks to their golden shares.
YPF after the go of the Spanish continue to be a SA (Private Corporation), where the state AKA taxpayers acts as another shareholder so Arg. taxpayer owns the 51% of the company now.
Is the same example so tell me why yours is better than the Argies? Because you don’t like them?
“PH. yet just over a year ago, CFK was praising them”
This shows that the govt. didn’t have any animosity toward them and that is able to punish anyone that breaks the law. Is called “impartiality”.
@Xect
The only one to feel embarrassment here should be British as they lead the rank of expropriation the world.
en.wikipedia.org/wiki/Nationalization#United_Kingdom
They are right to claim to UK govt. a fair compensation for all assets sized and billions on damages.”
I love the role reversal here - if your being ironic to show up the hypocrisy of Argentina's critics. If you actiually believe my government is Marxist though I can assure you its not! =(
I’m showing the little head here that none can criticise Argentina or any other country for they own sovereign decisions.
“if your being ironic to show up the hypocrisy of Argentina's critics” of course you are right like the tube stops in Victory Station and in Vic sounds classic music.
“If you actiually believe my government is Marxist though I can assure you its not!”
Of course I know UK is not a Marxist country but if brits want to becomes Marxist is their prerogative what is the problem? meanwhile UK doesn’t want to impose the regime to other countries is fine for me.
The head of the delegation offered warm congratulations to President Cristina Fernandez on her successful repatriation of YPF holdings back under rightful control of the Argentine people.
Noting that the Chinese people recollect with deep emotion the efforts made by leader Cristina Fernandez for the strengthening and development of Sino-Argentine friendship, he added that the bilateral friendship is developing as the days go by under the deep care of the supreme leaders of the two parties and the two countries. In the agreement announced, China acknowledges that the Malvinas rightfully belong to the Argentine people. The Argentinean minister present reiterated the strong fraternal alliance with China and mentioned that both the island of Formosa as well as the Tibetan regions rightfully is an undeniable part of the People’s Republic of China. He further mentioned that the Dali Llama was not welcome in Argentina and would not be granted a visa. The Chinese committee wished the Argentine people greater successes in the building of a thriving nation, united close behind the spirit of Justicialismo headed by President Fernandez. He expressed the will to join the Argentine and Chinese comrades together in making positive efforts to boost the friendly ties between two countries.
Agreed =)
#28 You're having a laugh!
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!