Spanish oil firm prepares to sue Argentina over nationalisation
SPANISH oil firm Repsol yesterday began legal proceedings against the Argentinian government after its 51 per cent share in oil firm YPF was nationalised last month.
Repsol is demanding more than $10bn (£6.2bn) in compensation and said it has informed Cristina Fernandez, Argentina’s President, of a dispute under the Spanish-Argentinian investment treaty.
Repsol must now wait six months before taking the case to arbitration at the World Bank’s International Center for Settlement of Investment Disputes (ICSID) but analysts suggest that there is little chance of a payout.
A quarter of ICSID cases have been brought against Argentina but it rarely complies with judgements.