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EU's Barroso urges Argentina to uphold international agreements on business protection

posted 17 Apr 2012, 04:15 by Mpelembe   [ updated 17 Apr 2012, 04:16 ]

EU Commission President says he expects Argentina to uphold international agreements on business protection with Spain.

BRUSSELS, BELGIUM (RECENT) (EBS) - European Commission President Jose Manuel Barroso said on Tuesday (April 17) he expected Argentina to uphold international agreements on business protection with Spain over its plan to take over the Argentine unit of oil major Repsol.

Argentine President Cristina Fernandez on Monday unveiled plans to take control of YPF , in which Repsol holds a share, drawing swift warnings from key trade partners.

Barroso said the Commission had emphasised the need for mutually agreed solutions which do not harm the business environment and was thus disappointed with the announcement.

"I am seriously disappointed about yesterday's announcement. We expect Argentinean authorities to uphold their international commitments and obligations, in particular those resulting from a bilateral agreement on the protection on investments in Spain," Barroso told reporters.

I have asked the Commission services to follow this matter up very closely as a matter of a priority," he said.

YPF has been under intense pressure from Fernandez's centre-left government to boost production, and its share price has plunged due to months of speculation about a state takeover.

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