Obviously international companies should not be investing in Argentina as, with the nationalization of Spanish company Repsol YPF in Argentina this week, the Argentinian government of Cristina Kirchner has proved it can’t be trusted.
Not only has Kirchner now illegally nationalized Repsol, in effect removing it from its legal owners’ control and leaving it with only 6 percent of shares where before it had 57 percent, she is also threatening nationalization of banks and telecommunications company.
Spanish companies that could be affected included Telefónica, Banco Santander, BBVA, Endesa, Gas Natural, Mapfre, DIA, Rosegur, Cordere and NH Hotels.
For any international company to consider investing in Argentina at this time, while under the crackpot rule of Cristina Kirchner, they would have to be crazy. After all, Argentina obviously cannot be trusted to abide by international laws.