The Spanish government on Monday slammed as "arbitrary" the decision taken by the Argentinean government to expropriate the petrochemical company YFP, which is a subsidiary of Spanish company Repsol.

The Spanish government would adopt "clear and firm" measures to defend the interests of Repsol and all Spanish companies abroad, said a joint statement by Foreign Minister Jose Manuel Garcia-Margallo, Industry Minister Jose Manuel Soria and Secretary of State for Commerce Jaime Garcia Legaz.

In a press conference following an emergency cabinet meeting called by Spanish Prime Minister Mariano Rajoy, Garcia-Magallo said that the measure taken by the Argentinean authorities has "broken the climate of friendship" between the two countries.

Soria, meanwhile, said it was a hostile decision against Repsol and therefore against Spain and the Spanish government. He commented that the measures that Spain would adopt in the following days would be "clear and solid," adding they have already worked on it.

Given that Argentina had broken the rules of dialogue, he said he hoped the action would "not be the start of an escalation, which will only serve to make a bad situation worse."

YPF is the biggest oil producer in Argentina and operates half of its refineries, ranking the world's 15th largest petroleum refining company.