On 25 October 2011, the Argentine Republic issued Decree 1722/2011 (the "Decree"), which took effect on 26 October 2011. (A copy of the Decree is enclosed.) The Decree revoked exemptions previously granted to companies in the oil and gas and mining sectors from the obligation to repatriate 100% of their export revenues to Argentina. The revoked exemptions had permitted oil and gas investors to repatriate just 30% of their export revenues, and excused mining investors from the repatriation requirement altogether.
The Decree may have a significant negative impact on investors in the Argentine oil, gas and mining sectors, and may infringe upon the Argentine Republic's international treaty obligations, including the obligation, enshrined in many of Argentina's bilateral investment treaties, to afford foreign investors "fair and equitable" treatment. We are closely monitoring developments with regard to the Decree, and would be happy to discuss these developments with you.