Cristina Fernández de Kirchner, Argentina's President or better known as "New Evita", introduced last week into Argentina's Congress her intention of expropriating 51% of YPF's shares, mainly owned by Spanish's petrochemical Repsol.
Although Repsol is trying to convince and calm the markets, stating that this decision does not deplete by any means the expansion plans that the company is already implementing, it has already had a harmful impact on the stock market.
So what will the world's next step be? It seems as if the EU are studying a possible way to redirect The Pink House's decision.
Take a look at this video: http://www.bbc.co.uk/news/business-17810733
Taking from the rich is always popular politics, but is it always the right thing to do? Well, it seems as if Argentinians support the measure, but, is it actually legal, or at least morally correct?
LET US KNOW WHAT YOU THINK ABOUT THIS!
When YPF went through economical problems, approximately 20 years ago, and Argentina begged for investors, Repsol decided to take over the Petrochemical. However, now YPF has discovered in "Vaca Muerta" (south-western Argentina) a huge oil field, and mysteriously Fernández de Kirchner decides to expropriate the company. Can it possible be by chance? Don't think so.
ReplyDeleteExpropriating a company, however, isn't, by any means, illegal; as long as the government pays the amount that the company is worth, in this case 8.000 million Euros.
Let me explain this. If the government of Spain decides to increase AVE's railway line and it happens that this new railway line has to cross through your house, the government will contact you and ask you to leave (obviously they won’t ask you about it, your opinion doesn't matter, you are forced to leave!) paying the amount that your house is worth. Spain's government is now expropriating your house.
Therefore, it is illegal if the government comes along and decides to expropriate a company by force, without paying what the company is worth or minimizing its price.
In addition, I would like to say that this act is, in my opinion, not only illogical and uncivilized but it is an act that suits more a banana republic cacique than a leader of a civilized, cultural and democratic country of the 21st Century, such as Argentina.
Nonetheless, Argentineans mainly agree on her decision. This shouldn't surprise us, since this politician has sold to her citizens the idea that the energy that YPF exploits belongs to Argentina and thus, they have the rich to expropriate the corporation in such conditions. This shouldn't surprise us either, since we all know that cheap populism, and cheap populism regarding patriotism is always a good way to keep masses happy.
However, what we should all encourage is, a deep-in reflection on the power of manipulation and the lack of critical thinking in our modern society.
Finally, I would like to add that the global markets have laws and regulations which ensure stuff like human rights to be protected. So, if we decide to simply expropriate a business which had been sold to an other corporation without paying for it we are braking the law in the same way as if we decided to exploit children in any factories; and, breaking the Human Rights, is simply unacceptable.
This speech might sound to some of you too extreme, but the expropriation of YPF in this conditions is in my opinion an attack to human's freedom, and just as Nelson Mandela said :"For to be free is not merely to car off one's chains, but to live in a way that respects and enhances the freedom of others".
I believe that it is by no means acceptable to expropriate and nationalise a company by force, instead of being civlised and professional about it, paying what the company is worth, which is in escess of 8000 million euros.
ReplyDeleteFernández de Kirchner, the Argentinian president, had not shown any interest in making a move to nationalise YPF before they stumbled accross this colossal oil fields, which makes it obvious that all she sees is a potentially lucrative opportunity, which will increase her nation's wealth considerably.
As Dani pointed out, most Argentinians are happy with her decision, but then, why wouldn't they be? It benefits them hugely, gaining assets worth over 8.000 million euros and not having to pay a cent for them.
What seems despicable to me is that YPF and, by extension, Repsol, have had to put in a huge amount of work and capital to investigate and find this oil field, and then go on to dig down until it could be tapped, only to be shot down at the final hurdle, with it being seized by the Argentinian government.
In conclusio, I strongly believe that what has been done should be considered a crime, beacause it is unethical on many levels. They have heartlessly exploited the work and investment of a Spanish company and have simply made it theirs, which makes them no better than a lowly thief.
I totally understand your opinions and great part of it turns to be true, but let me point out some details which in fact are experiences that I've personally heard, as an argentinian member.
ReplyDeleteYPF was sold to Spain years ago by Menem, the president of Argentina at that time. Unfortunately he sold 90% of the company shares which consequently made us loose all control of the uses of petrol and its prices. But more importantly, this petrol business was sold with certain requierements that Spain should have taken care of. Don't forget that negotiations need to be fullfilled. Instead, enterprenwers in Spain managed to skip this negotiations until the point in which the same argentinians got fed up. You might me asking yourselves what am I trying to say.
Well it is true that expropiating a company without paying isn't moral , but do you think that selling all the argentinian oil to several countries and leaving no sources to the population is moral? I mean I know for a fact that up until now many people were insecure of travelling from Buenos Aires to Cordoba(the second largest city) just because they knew that there wasn´t enough oil! Queues and queues were seen throughtout all the oil stations and prices were rising everyday because there wasn't enought to support the population needs!
For all the above reasons I defend the expropiation of YPF from Repsol although I agree that the actual president Cristina made it very quickly and undecently. Moreover, and I'm sorry to be saying this, but countries are always competing for each other and for once that Argentina is getting better after such a crisis while Spain is getting worse, action needed to take place. LIFE IS A GAME they say... there is always a winner and loser.
Agus Nieto
It's really interesting to see this from a different perspective Agustina. Thanks.
ReplyDelete