Spain’s Ministry of Industry has announced it will not implement the import restrictions on Argentine biofuels it put forward less than six months ago.

Spanish Industry Minister José Manuel Soria said “the measure can have a negative effect on oil prices” and explained that “in order not to harm those affected” by a price hike the measure had been scrapped.

“This announcement goes in the right direction, it is positive because it leaves the implementation of quotas without effect,” Gustavo Idígoras, adviser to the Argentine Chamber of Biofuels, told La Nación.

Five months ago the Argentine government, under President Cristina Fernández de Kirchner’s lead, expropriated 51% of YPF, the Argentine branch of Spanish owned oil company Repsol. The Spanish government initially retaliated by announcing it would impose restrictions on the import of biofuels, a measure that would mainly affect Argentina and Indonesia, the two main exporters of biofuels to the Iberian country.

Read more