MercoPress. South Atlantic News Agency
YPF dispute has meant a “disruption of trust” between the EU and Mercosur
Calleja emphasized that “the EU is the world’s top commercial power” 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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Read all commentsUK Foreign Secretary William Hague has hit out at Argentina and China after their governments announced today that the seized petroleum reserves of a Spanish-controlled energy firm would now be developed by PetroChina and the Sinopec Group. “It was all in bad faith as they seem to have planned stealing it all along...” the Foreign Secretary was quoted.
Apr 26th, 2012 - 02:14 am 0Argentina 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.
@ Well.. Well.. Well. The plot thickens, and something tells me the USA will not at all be happy with the chinese involvement if such underhad tactics inbreach of international law have occured!
Apr 26th, 2012 - 08:10 am 0I think this may be another of chicureo's windups, like the one about my Queen as some kind of North Korean “First Secretary of the Workers Party”. I'd have thought such a significant development would have been reported here. But we'll see...
Apr 26th, 2012 - 08:39 am 0Commenting for this story is now closed.
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