1. Repsol-YPF Spanish (Repsol) and Argentine (YPF) assets YPF formerly a state-owned oil company in Argentina YPF privatized in 1993 and Repsol in 1997 YPF taken over by Repsol in 1999 Accusations by Argentine government of lack of investments Both employ 40,000 workers; 15 th largest refining oil firm

2. Repsol-YPF Repsol owns 57% stake in YPF; the measures by the Argentine government would leave Repsol with only 6% Shares of the company went down Book value $4 bn.; CEO Brufau claims it to be near $10 bn. Argentine ambassador summoned in Spain Should governments intervene?

3. Repsol-YPF What is expropriation? (Wiki) “Politically motivated and forceful confiscation and redistribution of private property outside the common law” “Expropriation of expropriators” “Loot the looters!” Russian revolution Class struggle

4. Repsol-YPF “Not good for Spain but worse for Argentina” (pres. Rajoy) Consequences? Worldwide? Argentina’s government accused Repsol of underinvestment in oil and gas fields, in spite of growing local demand and huge dividends Repsol blames Argentina of the constant change in its policy of subsidies, price caps, and export taxes

5. Repsol-YPF Spain and Argentina enjoy a long-lasting relationship Highly related culturally (immigration) What now? Bi-lateral trade to weaken? Visa permits? Sanctions? Other fronts? WTO? G-20 talks

6. Repsol-YPF “They’re ours, they’re Argentine” Mercantilism? Isolationism? Protectionism? Populism/nationalism? Opportunism? Infant industry? Strategic? Loss of sovereignty? The pendulum swings back? A new trade war?