The Argentine government says it will present a bill to the country’s senate for the nationalization of the YPF oil company which owned by Spanish firm Repsol.
Argentine President Cristina Fernandez said on Monday that the bill would allow the government to expropriate 51 percent of YPF shares, while the country’s oil producing provinces would get 49 percent.
"This president is not going to answer any threat, is not going to respond to any sharp remark, is not going to echo the disrespectful or insolent things said," Fernandez said.
YPF has been under heavy pressure from the Argentine government over the past two month for not investing enough in the country’s oil fields.
The move has already been criticized by the Spanish government. Spanish officials say Argentina risks becoming "an international pariah" if it takes control of the YPF, in which Repsol has a 57.4 percent stake.
Spain is Argentina's largest foreign investor and YPF is Argentina's biggest oil company. Last year YPF announced a major find of 1 billion barrels of shale oil.