The chairman of Spanish flagship energy firm Repsol YPF SA (>> Repsol YPF SA) blasted Argentina's decision to expropriate local unit YPF SA (YPF), describing the government's move as part of an effort to cover the rapid deterioration of the country's economy and an unsustainable energy policy.
Argentina's government forcefully intervened in YPF Monday and vowed to pass a law expropriating 51% of the company that accounts for more than half of Repsol's daily hydrocarbons output. Repsol has a 57.4% stake in YPF.
Repsol Chairman Antonio Brufau said at a press conference Tuesday that the Argentine government sought to lower the value of YPF shares before its formal expropriation, announced Monday.
"We will seek full compensation for YPF," Brufau said.
-By Ilan Brat, The Wall Street Journal, +34-91-395-8125, [email protected]