21 April 2012

ARGENTINA / SPAIN : 22 April UPDATE: B. Aires Tells Repsol: Tough Luck, See You In Court; Cristina's Reasons For Takeover.


      Oil giant Repsol will surely sue Argentina...and win...over the recent nationalization of the Spanish company's estimated $10.5 billion of YPF assets...right?
     Maybe not...looking over B.Aires's track record in court.
     Argentina is still involved in 25 of 147 pending cases before the World Bank's ICSID arbitration court.
     Though B.Aires says it has paid $15 billion in claims...Repsol will join a long line of impatient plaintiffs.
     And even if Repsol wins over YPF's value...President Cristina may not pay-up.
     Latin America is showing greater reluctance to accept the ICSID's authority.
     Ecuador and Bolivia have withdrawn from it...and Venezuela has also proposed to do so.
     Can Argentina be far behind?

      NEW!!!  President Cristina Kirchner's logic behind the takeover. 
       Some blame her new Deputy EconMin Axel Keillor for the plan.
      Already a financial rogue...Argentina may now become a 'global pariah'. 
      A cash grab was a reason for the expropriation.
      But B.Aires hamstrung Repsol explorations by capping oil...at $55 bbl....with the world price at $100.