Argentina, Spain at odds over oil company expropriation

Buenos Aires, Argentina (CNN) -- The Argentine government's decision to reclaim what was once its state-owned oil company through expropriation is straining diplomatic relations with Spain, where the news was met with objections.

The Spanish energy company Repsol purchased Argentina's oil and gas company, YPF, in 1999 during a period of privatization.

But Argentine President Cristina Fernandez de Kirchner announced this week a government plan to take YPF back through legislation that would expropriate a 51% share of the company. Through a decree, Fernandez immediately placed the leadership of YPF in the hands of Julio De Vido, the country's minister of planning and public investment.

The Senate began debating the proposed law Tuesday. Read More