MercoPress. South Atlantic News Agency

Spain now tells Argentina “YPF is no more than a bump” in a long shared history

Garcia Margallo: the two countries should sit to talk at “the time and place” which best fits.

Spanish Foreign Minister José Manuel García-Margallo adopted on Wednesday a conciliatory tone towards Argentina for the first time after the YPF seizure by saying Argentina and Spain should hold “kindred nation” talks.

Garcia-Margallo also invited President Cristina Fernández to attend the Ibero-American summit to be held in Spain in November and said the two countries should sit to talk at “the time and place” which best fits.

“I would love for Argentina to be present at the Cadiz Summit to express its points of view and to discuss things like they should be discussed: as brotherly nations. It would be a good opportunity”, the official remarked during a press conference at the Santa Cruz Palace in Madrid next to his visiting Mexican peer, Patricia Espinosa.

“Relations between Argentina and Spain are deeply imbedded in history and an issue as YPF is no more that a bump in the long shared road, and does not affect the long standing relation”, insisted Garcia Margallo.

Foreign minister Espinosa at the press conference reiterated Mexico’s position regarding Argentina’s decision to seize 51% of the YPF shares belonging to Spain’s Repsol.

“It is a sovereign resolution, but we don’t share Argentina’s view. We feel it doesn’t take the country in the right direction” Espinosa stressed.

Garcia Margallo revealed that since April 16, when the Argentine government officially expropriated YPF, he has had no contacts with Buenos Aires, but nevertheless insisted Spain was willing in honour to that long extensive relationship, to meet Argentine authorities and talk at “the time and place” which best fits.

Likewise the Spanish minister urged Argentina to fulfil its financial obligations towards Repsol and end what he called “discriminatory expropriations”, because only one company or one shareholder from the industry has been affected “and without paying a fair compensation”.

“We want Argentina to develop in the fastest possible terms and in a fair way, but recalling that legal security is one of the pillars for sustained successful development”.

Regarding the possibility that in the coming G20 meeting in Mexico next June a replacement for Argentina in the group is discussed, both ministers agreed such a move was not feasible.

“It’s not an issue brought up in the formal discussions of G20. There is no indication of a discussion to modify the integration of G20”, said Minister Espinosa. She added “as I said the YPF issue is a sovereign decision that we do not share. We believe it does not lead along the correct path”, and it’s up to Repsol to decide how to address the litigation.

However since the issue also involves Mexico’s government owned oil corporation PEMEX, and as such with a stake in Repsol, “as a government we are forced to ensure that any process involving Mexican interests is addressed in the framework of the legal system”.

Foreign minister Espinosa confirmed that President Felipe Calderón wishes to attend the Cadiz summit, which will be taking place a few days before his six year mandate is over and is replaced by the winner of the coming presidential elections next July first.