YPF dispute has meant a “disruption of trust” between the EU and Mercosur
European Commission Deputy Director General for Enterprise and Industry Daniel Calleja warned on Wednesday that Europe has lost its trust in Mercosur trade block after the government announced it would expropriate 51% of YPF shares, owned by Spanish oil company Repsol.
On arrival to Uruguay for a seminar on business opportunities, Calleja pointed out the European Commission has always been open to negotiate with Mercosur (including Brazil, Uruguay, Paraguay and Argentina) but following the latest events “there has been an obvious disruption of trust.”
He also reminded the European Union is “the world’s top commercial power” and ratified the block’s disposition to “defend an environment of international law security, stability and predictability for investments”.
Calleja is in Montevideo heading a delegation of European business people to participate in the seminar “Business opportunities in Uruguay” organized by the Uruguayan ministries of Foreign Affairs, Industry, Energy and Mining, and the Chamber of Industries.
The top official recalled that the European Commission and European Parliament among others strongly condemned the seizure of 51% of YPF shares from Spain’s Repsol, and expressed solidarity with the Spanish company, which is “a significant European investor” in the region.
“Hopefully a solution can be found for the issue through dialogue, but at this state no option can be discarded”, added Calleja.
The EC top official arrived in Uruguay precisely when the Argentine Senate is discussing the bill sent by President Cristina Fernandez nationalizing 51% of Repsol’s majority stake in YPF. Repsol holds (held) 57.43% of the Argentine company.
The bill was sent to Congress last April 16 and has the support from the ruling coalition and opposition parties, and also contemplates the seizure of Repsol’s shares in YPF-Gas, which is Argentina’s main retail distributor of liquid gas for home consumption.
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Argentina earlier had sent shock waves through the oil industry by announcing plans to nationalise local oil assets controlled by Spanish company Repsol.
Mr Hague warned the move by President Cristina Fernadez to take over a large part of YPF, the country's biggest oil company, was part of a wider protectionist agenda and that her eventual strategy was to seize the Falklands offshore petroleum fields as well.
Mr Hague's criticisms come as it has been reported the takeover scuppers years of planning by China's Sinopec Group to buy YDF.
Sources told Chinese website Caixin.com that Sinopec had held talks with Repsol to buy its controlling 57% stake in YPF.
Caixin.com cited a source as saying Sinopec, China's second-largest oil company, had reached a non-binding agreement to take over YPF for more than £9bn.
The Caixin.com report said Sinopec was still in talks with Repsol to buy YPF despite the nationalisation threat and the Financial Times said Repsol had not informed Argentina of the discussions with the Chinese oil firm. PetroChina that it was announced today would be spearheading the new reorgaization of YPF had no comment.
bravo Cristina who is more bolder than M.Thatcher.
@4 TT. The rest of the world seems to hold the opinion that trading and commerce is advantagous to their peoples. Argentina considers them dangerous. What next, government health warning printed at the bottom of the pesso?
Mr Calleaj as a true gift for understating the obvious.
Anticipated production is highly optimistic and the benefits of the expropriated YPF petroleum will be absolutely important to future generations of Argentineans and Chinese.
Totally agree =) Ti amo mi reina, besos
Nonsense Mrs Thatch could wipe the floor with Cristina whilst simultaneously head-butting husband Nestor and wedgy-ing all 4 of the Junta. I'd never vote for Thatch but I'd rather have her on my team when it comes to a political punch up....move over iron Mike Tyson.
How artless.
I do not know about Thatcher. Lucrezia Borgia, more likely.
She got the unions sorted out and the likes of Scottie_Kirchnerist and his commie mates in Scotland and all the other main industries including the likes of Arther Scargill who were ruining the country.
Businesses were set free from the 'strike first and think later' mentality.
The Mad Bitch / Turkey Neck / Rubber Doll cannot think in a cohesive manner with her bi-polar syndrome and uncontrollable temper (which she admits to).
This despicable woman is not even fit to lick the shoes of Lady Thatcher.
Still can not make up my mind.
Wind up.
Not a wind up
Wind up
Not a wind up
Wind up
Not a wind up
No, no good, still can not make my mind up.
Where did I put my decision making aparatus?
Heads, it is a wind up
Tails it is not a wind.
Ah, it was heads! your winding us up.
Words cannot effectively describe what that is.
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