Argentina, Spain agree to negotiate over YPF nationalization

Argentina, Spain and Mexico have agreed to negotiate a deal on Buenos Aires' 2012 nationalization of Repsol's stake in YPF, the Economy Ministry said Monday, AFP reports. Negotiations will set a compensation amount that will have to be agreeable to the Spanish oil giant which had held a 51-percent share of Argentina's YPF. The agreement to negotiate means that the parties will cease litigation and other action in the case. Repsol had put the value of its loss at $10 billion, and filed for help with the International Centre for Settlement of Investment Disputes. Argentina's leftist government in April 2012 decided to nationalize YPF, in which Repsol had controlling interest, sparking a major diplomatic row. Buenos Aires argued that the Spanish company was not investing enough in the Argentine company and using it only to extract profit. Pemex holds 9.5 percent of Repsol's capital.