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Montevideo, December 5th 2016 - 16:33 UTC

YPF nationalization bill does not contemplate compensations, says Kirchnerite Senator

Tuesday, April 24th 2012 - 03:57 UTC
Full article 29 comments
Senator Aníbal Fernandez said CEO Brufau is responsible for stripping YPF  Senator Aníbal Fernandez said CEO Brufau is responsible for stripping YPF

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.
 

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  • DanyBerger

    @Fernandez

    “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.

    http://www.elmundo.es/mundodinero/2010/01/22/economia/1264190214.html

    If was legal for Spain is legal for Argentina, Fair is fair

    Apr 24th, 2012 - 06:01 am 0
  • Bombadier Spoon

    Dany that maybe true but that was over thirty years ago. We judge everyone by there actions that was done along time ago. For example Russia finally got accepted into the WTO. We could simply say no because they were a communist country 30 years ago. No. To out simply. Things move on. What may have been acceptable then is not really acceptable now.

    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.

    Apr 24th, 2012 - 06:20 am 0
  • Xect

    “Fair is fair” - Ever heard of two wrongs don't make a right?

    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........

    Apr 24th, 2012 - 06:36 am 0
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