In response to demands of the Argentinian people to control their own resources, President Cristina Fernandez proposed a bill that would nationalize Argentina’s largest oil company, YPF. The legislation would give the Argentine government a majority stake in the shares of YPF, which is currently held by the Spanish company Repsol.
Governors of Argentina’s oil-producing provinces have withdrawn 15 oil leases, because the Spanish-controlled YPF did not follow through on its promises to develop crude production. Repsol has depleted YPF, causing Argentina to require energy imports. This has contributed to a $3 billion budget deficit for the Latin American country.
The move by Fernandez sparked outrage from imperialist Spain, which wishes to enrich its ruling class by exploiting Argentine resources at the expense of the people.
“We are the only country in Latin America, and I would say in practically the entire world, that doesn’t manage its own natural resources,” said Fernandez, who described the proposed legislation as a “recovery of sovereignty.”
