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dipsydoodle

(42,239 posts)
Tue Apr 17, 2012, 07:13 AM Apr 2012

Incensed Spain threatens Argentina after YPF seizure

Source: Reuters

(Reuters) - An incensed Spain threatened swift economic retaliation against Argentina on Tuesday after it seized control of YPF, the South American nation's biggest oil company, in a move which pushed down shares in Spanish energy giant Repsol, the major shareholder.

Madrid called in the Argentinean ambassador in a rapidly escalating row over the nationalisation order by Argentina's populist and increasingly assertive president, Cristina Fernandez, a move which delighted many of her compatriots but alarmed some foreign governments and investors.

Promising action in the coming days, Spanish industry minister Jose Manuel Soria said: "With this attitude, this hostility from the Argentine authorities, there will be consequences that we'll see over the next few days. They will be in the diplomatic field, the industrial field, and on energy."

Repsol (REP.MC) said YPF (YPFD.BA) was worth $18 billion as a whole and it would be seeking compensation on that basis, but the Spanish oil major's shares fell by more than eight percent in Madrid early on Tuesday morning.

Read more: http://uk.reuters.com/article/2012/04/17/uk-spain-argentina-ypf-idUKBRE83G0IU20120417

10 replies = new reply since forum marked as read
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Incensed Spain threatens Argentina after YPF seizure (Original Post) dipsydoodle Apr 2012 OP
They didn't expect the bloody Spanish Inquisition! n/t Ian David Apr 2012 #1
I'm liking her more all the time madokie Apr 2012 #2
I see the negotiations have begun. nt bemildred Apr 2012 #3
Literally impossible to see this coming 4th law of robotics Apr 2012 #4
Until they've got whatever revenue they' d be due dipsydoodle Apr 2012 #5
It's reasonable for Argentina to maintain strategic control of its energy sector. David__77 Apr 2012 #6
Yes but allow for the fact dipsydoodle Apr 2012 #7
I agree with that completely. David__77 Apr 2012 #8
I wish our government would "seize" control of our essential resources... Peace Patriot Apr 2012 #9
Billionaire Eskenazis Confront Repsol Debt After YPF Seizure Judi Lynn Apr 2012 #10
 

4th law of robotics

(6,801 posts)
4. Literally impossible to see this coming
Tue Apr 17, 2012, 10:38 AM
Apr 2012

I would have thought the Spanish would have welcomed losing this source of revenue. Especially in their current fiscal state.

dipsydoodle

(42,239 posts)
5. Until they've got whatever revenue they' d be due
Tue Apr 17, 2012, 11:00 AM
Apr 2012

Last edited Tue Apr 17, 2012, 04:47 PM - Edit history (1)

they've got nothing.

edited for clarity

Repsol owns 57% of YPF. Argentina wants to leave Repsol with only 6%.

David__77

(23,496 posts)
6. It's reasonable for Argentina to maintain strategic control of its energy sector.
Tue Apr 17, 2012, 11:36 AM
Apr 2012

It's a matter of national security. The wording "seized" is loaded. When we use eminent domain in the US, few say "seized."

dipsydoodle

(42,239 posts)
7. Yes but allow for the fact
Tue Apr 17, 2012, 12:01 PM
Apr 2012

their government received funds when they privatized that industry. To re-nationalise it they need to buy part back : not just take it.

David__77

(23,496 posts)
8. I agree with that completely.
Tue Apr 17, 2012, 12:27 PM
Apr 2012

Argentina should provide fair compensation based on market conditions in order to encourage mutually beneficial economic cooperation with Spain.

Peace Patriot

(24,010 posts)
9. I wish our government would "seize" control of our essential resources...
Tue Apr 17, 2012, 03:51 PM
Apr 2012

...oil, gas, minerals, farm land, forests, buildings/property, etc. (not to mention hoards of taxpayers' cash) from tyrannical foreign powers (China, Saudi Arabia, et al) and tyrannical transglobal corporations (Exxon Mobil, Chevron, Citicorp, Monsanto, Bechtel, Boise-Cascade, et al).

We have so many tyrannical powers controlling our government, our resources, and our lives and welfare--sometimes competing against each other, but mostly working in concert to loot and disempower us--that ours is a more complex situation than Argentina's, where its former colonizer, Spain, managed to continue colonization by a different means, corporate rule. Severe that tyranny, and Argentine sovereignty is almost achieved.

Argentinians have already done yeoman's work to free themselves from World Bank/IMF tyranny and U.S. "free trade for the rich," and to strengthen their democracy and recover from "first world" looting and plundering. Recovering control of its oil from Spain is the end of a long process of democratization. While this has not exactly been a simple--nor easy--process, and involves not just Argentina but a democracy/sovereignty revolution throughout Latin America (including the new leftist principle of "south-south" cooperation, trade and mutual aid), our situation appears, at least on the surface, to be, not just complex, but unsolvable. It isn't unsolvable. We just have to start somewhere--as the Latin Americans have done.

My recommendation: start with the corporate-run, 'TRADE SECRET' voting systems, now everywhere in the U.S., in every state. We need a REAL "Boston Tea Party" to throw these machines into 'Boston Harbor' (so to speak). That can snowball into an anti-corporate revolution.

That's what we need, ultimately--a peoples' revolution against our corporate masters, with not just re-regulation and re-taxation of these looters and evildoers, but complete dismantling of their corporations--pulling their corporate charters and seizing their assets for the common good. Such a revolution needn't be anti-capitalist, merely anti-monopoly and anti-bigness--if our people want to retain aspects of REAL capitalism--i.e., a truly free marketplace consisting of small businesses and innovators, tempered by government-enforced labor rights and social responsibility. What we have now is neither capitalism nor democracy. It is fascism (the welding together of private corporations with state power). THAT is why the rich are getting richer, and the poor are getting poorer, and the government is engaged in corporate resource wars, among other abominations. This is NOT capitalism, and it is extremely anti-democratic.

Corporations, initially, in the United States, were permitted FOR THE PUBLIC GOOD, for limited time periods, and their charters could be pulled for any reason or no reason. They were never intended to live forever, gobbling up wealth and becoming tyrannical powers. The pooling of capital to proceed with some worthy project, of benefit to all, on a temporary basis, is one thing; the tyranny of capital is quite another thing. It is a crime of the first magnitude against human rights. It's what the U.S. colonies rebelled against! (The British East India Company.)

To get to the point where we have any chance at all to elect a real democrat--an FDR-like president who will take on "organized money" on our behalf--and real democrats in Congress and in state houses, and evict these Diebold-selected leaders*, we must first restore vote counting to the PUBLIC VENUE. That is the bottom line of democracy and we have lost it--with not one line of this horrendous and historic news appearing in the Corporate Press.

That is what Argentines have and we don't--the ability to elect leaders who act, with courage and vision, in the public interest.

---------------------------

*(I think Obama was truly elected, on the hopes and dreams of the American people for peace and social justice, and by a greater margin than we know (5% to 10% bigger margin), but he was also permitted to be elected and that is the problem. To be permitted to be elected, he had to make deals. One of them we can surely surmise was no prosecution, or even investigation, of Bush Junta war criminals. What other deals did he make? Insurance-run health care? No serious cuts to the military? Continued privatization of military and other government contracts? Continued "war on drugs" as backup war profiteering? Trillion dollar bankster bailout? No serious reform of any kind? Believe me, the 'TRADE SECRET' voting system--which spread like a cancer over the whole country during the 2002 to 2004 period--can "deliver" for its corporate pals. It is now about 80% owned and controlled by ONE, PRIVATE, FAR RIGHTWING-CONNECTED corporation--ES&S, which bought out Diebold. Our corporate masters are not stupid. They knew we needed a period of "forgetting" of the horrendous war and financial crimes of the Bush Junta. Obama is the president of "forgetting." And, to make sure of Obama, they additionally saddled him with the most unrepresentative Congress that we have ever seen. The Scumbag Congress. They now have the power to do this--with the 'TRADE SECRET' voting machines--and that's what they did.)

Judi Lynn

(160,609 posts)
10. Billionaire Eskenazis Confront Repsol Debt After YPF Seizure
Tue Apr 17, 2012, 03:56 PM
Apr 2012

Billionaire Eskenazis Confront Repsol Debt After YPF Seizure
By Rodrigo Orihuela and Heather Walsh - Apr 17, 2012 2:25 PM CT

Argentina’s billionaire Eskenazi family is confronting more than $2 billion of debt with its main source of income at risk after the government seized control of YPF SA (YPFD) in a dispute over investments and dividends.

The family’s Petersen Group, which has 25 percent of YPF, owes Spanish partner Repsol YPF SA (YPF) 1.45 billion euros ($1.9 billion) after it bought a stake in YPF, the Madrid-based company said yesterday. The Eskenazis counted on YPF dividend payments of as much as 90 percent of profit to repay Repsol and about $680 million of loans with banks including Citigroup Inc.

“Should the Argentine government cut the dividend at YPF (which is the most likely scenario), the Petersen Group would default on its loans,” Exane BNP Paribas analysts Alexandre Marie and Charles Riou said in a note to clients today. “A dividend payout of less than 90 percent triggers a default in all four loans.”

President Cristina Fernandez de Kirchner ousted Sebastian Eskenazi as the head of Buenos Aires-based YPF yesterday, appointing Planning Minister Julio de Vido to run the company and announcing plans to seize 51 percent in YPF from Repsol. The expropriation, which follows the takeovers of airline Aerolineas Argentinas and a $24 billion pension fund during Fernandez’s term in office, prompted speculation that dividends will be cut.

More:
http://www.bloomberg.com/news/2012-04-17/billionaire-eskenazis-confront-repsol-debt-after-ypf-seizure-1-.html

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