BUENOS AIRES—President Cristina Kirchner, in a move that marks a watershed in expanding the state's grip on the economy, said she will send a bill to Congress to nationalize Argentina's largest oil-and-gas company, YPF SA...Capital flight out of Argentina? Why would there be capital flight when they're trying so hard to Win The Future?
Under the proposal, which declares the petroleum industry of "national public interest," Argentina's federal and provincial governments would take 51% of the company, now majority owned by Repsol YPF SA of Spain. The move is sure to be approved in Argentina's Congress, where the leftist Mrs. Kirchner's governing Peronist party holds a majority.
Initial indications were that government would take its stake entirely out of Repsol's shares, which would leave the company with roughly 6% of YPF, down from 57%.
The nationalization marks the culmination of a monthslong battle between YPF and the Kirchner government. The administration blames YPF for low production that has forced Argentina to spend heavily for imported energy, at a time when it is enduring a scarcity of dollars due to capital flight.
Monday, April 16, 2012
President Cristina Kirchner, a wise Latina, has upped the stakes for our own Peronist president in this bold move: