New York Court Overturns $16.1 Billion Judgment Against Argentina
The U.S. Court of Appeals for the Second Circuit has reversed a significant $16.1 billion ruling against Argentina, concerning the expropriation of energy company YPF. This decision, delivered on Friday, nullifies an earlier mandate by U.S. District Judge Loretta Preska, which required Argentina to compensate former shareholders, Petersen Energía and Petersen Energía Inversora, for the nationalization of YPF in 2012. The reversal was met with approval from Argentine President Javier Milei, who referred to the outcome as a victory in a national address.
President Milei expressed his enthusiasm, stating, “Today is a day of celebration for the good Argentines. What seemed impossible, we made possible.” In alignment with this development, the Argentine government has introduced a legislative proposal aimed at curbing expropriations and enhancing compensation for those impacted by such actions.
In a move to distance his administration from past policies, President Milei criticized former leader Cristina Fernández de Kirchner, whose government was responsible for the nationalization. “Because I’m Milei, I’ll say it the Milei way,” he remarked, claiming his administration has “cleaned up the mess” left by the previous leadership. Kirchner is currently under house arrest following a corruption conviction that resulted in a six-year sentence.
Previously, Judge Preska had ordered Argentina to hand over its controlling 51% stake in YPF as partial compensation to the plaintiffs. However, this directive was suspended by the appeals court shortly thereafter. The legal proceedings were brought to U.S. courts due to YPF’s listing on the New York Stock Exchange.
The 2012 nationalization of YPF, Argentina’s largest energy firm, has been a contentious issue, impacting Argentina’s international reputation regarding its financial commitments. Despite these challenges, YPF has been instrumental in exploiting Argentina’s shale gas resources in the Vaca Muerta field, boosting crude production to nearly 600,000 barrels daily by January, constituting approximately 68% of the nation’s total output. In 2025, YPF reported a significant profit of $5 billion, marking its highest earnings in a decade.
Milei’s administration continues to face economic hurdles, including depleted foreign reserves. He has been vocal about his intention to privatize state-owned enterprises and holds political adversaries responsible for the litigation aftermath of the YPF acquisition.
For further updates on Latin America and the Caribbean, follow AP’s coverage.
