BUENOS AIRES, Argentina – Argentina's government has reached an agreement in principle to compensate Spain's Repsol for last year's 51 percent expropriation of the YPF energy company.
Repsol, YPF and Mexico's Pemex, which holds a stake in Repsol, said Monday that they agreed tentatively on a process for determining a compensation amount. The parties also agreed to suspend legal actions.
Argentina expropriated Repsol's controlling stake in YPF on April 16, 2012, without paying a single cent. The Spanish company has been demanding $10.5 billion in compensation.
The preliminary deal was reached after company and government officials from Argentina, Spain and Mexico met in Buenos Aires. No other details of the agreement have been released and it must be ratified during a Repsol board meeting on Wednesday.