Argentina nationalises Spanish oil giant

On 16 April 2012, the government of Argentina nationalises Spanish oil giant (Federal Petroleum Deposits (YPF)).

Altogether, 51% of Spanish oil multinational Repsol's 57% stake in YPF has been claimed by the Argentine government.

[Argentine President Cristina] Kirchner said the move was justified by the intransigence of Repsol-YPF. Repsol has reduced investment in oil and gas extraction and refining since taking full control of the previously state-owned company in 1999.

As a result, oil imports cost Argentina US$9.4 billion in last year, more than double the cost in 2010.

This has raised Argentina's trade deficit at a time when it has little access to international credit markets, due to its default on international debt to groups such as the IMF in 2002.

The government has said one goal of the nationalisation is to return Argentina to an exporter of fossil fuels. Recent discoveries have given Argentina the third-largest reserves of shale oil and gas in the world.

When the interests of the business conflicts with that of the people, the people have to act.

… Venezuelan President Hugo Chavez said the decision “aligns with the principle of sovereign control over natural resources”.

The article concludes that:

Ultimately, it seems that both sides had little choice. Repsol is bound to the corporate principle of investing in the most profitable ventures available. This did not include providing affordable natural gas and petrol, under a scheme of price caps, to the people of Argentina.

Given the failure of Kirchner's policy of price controls, nationalisation was the most feasible way to maintain affordable access to energy for the population while seeking to end dependency on oil imports.

Emphasis Mine

Corporate interests and national interests are not aligned. However, the state in this case went against the interests of a foreign company to satisfy Argentine interests.