Spain cuts Argentinean ties in favour of domestic or European biofuel

The Spanish government is to cut its imports of Argentine biodiesel in favour of domestic or European imports.

Spain is to favour animal fat-based diesel fuel or vegetable oil from Europe over oil made in other nations that export to the country. The move is primarily in protest to the Buenos Aires' expropriation of oil group Repsol's YPF subsidiary.

Deputy prime minister Soraya Saenz de Santamaria told a news conference after a cabinet meeting: "This action will allow us to support the refinery operations of Spanish and European business."

She also pointed to a number of 'equivalency' measures which will aid refineries based in Europe. The move is a retaliation by Madrid after Argentine President Cristina Kirchner announced their attempts to nationalise Spanish oil group Repsol's subsidiary YPF.

Last year Spain imported 2.096 billion euros (£1.7 billion) of products from Argentina, of which 706 million euros (£577 million) were biofuels, according to Spanish trade figures.

Posted by Lauren Steadman