U.S. Judge Orders Argentina to Hand Over Majority Stake in YPF Within Three Days

A US federal judge has ordered Argentina to transfer its 51% stake in the national oil company YPF by July 17, 2025—or face serious legal consequences.

The order, issued by Judge Loretta Preska in New York, stems from a \$16.1 billion judgment against Argentina for unfair treatment of minority shareholders when it nationalized YPF in 2012.

Back then, Argentina took control of YPF by seizing shares from the Spanish energy company Repsol. While it later paid Repsol \$5 billion in compensation, it ignored other shareholders, including Petersen Energia and Eton Park Capital.

These investors later filed a lawsuit in the US, with backing from litigation fund Burford Capital, claiming that Argentina broke YPF’s own rules by not offering the same deal to everyone.

In 2023, the court agreed and ordered Argentina to pay \$14.39 billion to Petersen’s interests and \$1.71 billion to Eton Park.

As the country hasn’t paid, Judge Preska now wants Argentina to transfer its stake in YPF to the claimants as part of the enforcement. The ruling also includes \$2 million in daily interest until it complies.

What happens if Buenos Aires misses the July 17 deadline?

Preska can hold Argentina in civil contempt—a power she has used before in Argentine debt litigation, where fines of \$50,000 per day were threatened. She may also direct Bank of New York Mellon, the depositary for YPF’s NYSE-listed shares, to complete the hand-over without Argentina’s signature.

Once control of YPF is out of Argentine hands, the plaintiffs could move to seize other commercial assets in the United States, from bank accounts to export receivables, amplifying pressure on the country’s already thin foreign-currency reserves.

Argentina argues it legally cannot hand over the shares without Congress’ approval—a requirement under its 2012 law that nationalized YPF. But the US court ruled this domestic law can’t block a foreign judgment.

Legal experts say if Argentina fails to act, it could face asset seizures abroad, higher borrowing costs, and further damage to investor confidence. Burford Capital could take most of the payout as it bought Petersen’s litigation rights years ago.

Financial markets have reacted sharply: Burford shares jumped after the ruling, while YPF stock fell. Today, President Javier Milei’s government is appealing again and may take the case to the US Supreme Court.

But with few financial or legal options left, pressure is mounting. Argentina’s international reserves are dangerously low, and inflation exceeds 200%. The country faces a hard choice: give up YPF shares or risk losing strategic assets elsewhere.