'Argentina's decision endangers friendship with Spain,' Spanish Minister

Spain’s Foreign Minister José Manuel García-Margallo warned today that “Argentina has just shot itself in the foot” as the expropriation of YPF energy company might lead to “a break- up with both Spain and the international community.”

During conversations with Spanish reporters, the minister emphasized his concerns as far as “Argentina’s decision could mean a break-up in its long-time good relationship with Spain”, and added, “The damage to Argentina can be massive as its decision can lead to the no access to international credit and/or loans.”

García Margallo also stated that the Spanish government is "already working in order to obtain the colaboration of the Unites States, and friend-governments within the European Union, and G-20." 

Likewise, the Spanish minister aimed to the expropriation being a populist move, and warned "what they did with YPF is not the way to guarantee salvation", and revealed, "The expropiation was firstly planned to be announced during Cristina Fernández de Kirchner's swear-in ceremony last year, and then for the Malvinas War 30th anniversary. However, we managed to stop those two attempts."  

Furthermore, García-Margallo also explained that he has already met with Argentina’s ambassador in Madrid, Carlos Bettini, to express the Spanish government’s disagreement over the decision taken by President Cristina Fernández de Kirchner.

"Unfortunately, Bettini just wanted to talk about Malvinas and not about Repsol-YPF."

Through the nationalization move, Argentina runs the risk of frightening off foreign investors, key to contributing money to help develop one of the world's largest reserves of shale oil and gas recently discovered in the Vaca Muerta area.

This led some analysts to question whether Argentina might have an ace up its sleeve in the form of a new partner such as China Petrochemical Corp (Sinopec Group).

Repsol has, however, identified Vaca Muerta as "the cause of the pillage", or the reason Argentina went after its YPF share.

A Chinese website said Sinopec was in talks with Repsol to buy YPF for more than 15 billion dollars, although other sources said the nationalization move would probably get in the way of such a deal. Repsol and Sinopec are strategic partners in Brazil.