Repsol-YPF: An illegal expropriation

A sense of ratified injustice pervaded Repsol executives, when, on the mid-afternoon of April 16, rumors coming from Argentina were confirmed. It is noon in Argentina. At the Casa Rosada in Buenos Aires, the head of state, Cristina Fernandez de Kirchner, is surrounded by governors and business leaders close to the party. In the midst of an epic speech, she confirms the expropriation of YPF. In her very rehearsed and histrionic remarks, she announces that the state shall declare 51% of the shares belonging to Repsol-YPF as belonging to the public and subject to expropriation. Of that percentage earmarked for expropriation, 51% would go into the hands of the national government and the other 49% would be controlled by the 10 oil-producing provinces. All shares are expropriated from Repsol and none from the Argentinean Petersen Group, owned by the Eskenazi family, which owns 25.46% of Repsol-YPF. (C) 2014 Elsevier Inc. All rights reserved.