The newly elected President of Argentina insisted this Monday on his desire to privatize YPF, the country’s largest energy company, of which the State is the main shareholder.
The libertarian’s plan is to “reconstitute” the company before selling 51% of the shares. However, this process will not be easy and requires congressional approval.
Can YPF be privatized?
It is doable, but it is not an easy task. Two complex procedures are necessary. On the one hand, the approval of two thirds of the Chamber of Deputies and the Senate. Currently, La Libertad Avanza would have difficulty achieving third place in any venue. Even with the support of a PRO sector. In addition to the legislative process, the government also has to coordinate with the states.
As for Vaca Muerta, one of the most important measures will be to correct the export quota of gas and oil producers. Currently, about 20% of products produced in the country are exported. The rest is for self-sufficiency.
With information from Bloomberg