U.S. Judge Orders Argentina to Surrender Oil Giant YPF—Milei Says Never

A US federal judge has ordered Argentina to hand over its 51% controlling stake in YPF, the nation’s flagship oil and gas company, to former minority shareholders.

The order, issued by Judge Loretta Preska in New York, aims to enforce a $16.1 billion judgment against Argentina for its 2012 nationalization of YPF.

The judge gave Argentina two weeks to transfer the shares to a global account at Bank of New York Mellon, after which plaintiffs—mainly represented by litigation funder Burford Capital—would receive the stake.

This ruling lands as a heavy blow to President Javier Milei, who inherited the legal mess from the previous leftist administration of Cristina Fernández de Kirchner.

Kirchner’s abrupt move to seize YPF from Spanish firm Repsol in 2012, without compensating minority shareholders as required by the company’s own rules, triggered years of litigation and further damaged Argentina’s reputation as a serial defaulter.

Milei, elected on promises to stabilize Argentina’s battered economy, now faces the prospect of losing control over YPF at a time when the company is more crucial than ever.

YPF is not just a symbol of national pride—it is a financial lifeline. In 2024, YPF generated about $18.5 billion in revenue and nearly $2.4 billion in profit, a dramatic turnaround from previous losses.

Its control over the Vaca Muerta shale field, one of the world’s largest unconventional oil and gas reserves, is central to Milei’s strategy to boost exports, attract investment, and rebuild Argentina’s depleted foreign reserves.

Argentina Fights $16.1B YPF Ruling as Economic Stakes Soar

The financial impact of the ruling is immediate and severe. YPF’s shares dropped by over 5% in New York, and Argentina’s sovereign bonds also fell, reflecting investor fears that the country could lose a vital source of income and economic leverage.

The $16.1 billion judgment represents nearly 20% of the national budget, a staggering burden for a country already struggling with over $120 billion in external debt, triple-digit inflation, and a fragile currency.

Milei has made clear he will never accept this outcome. He has vowed to appeal in every court, calling the ruling an attack on Argentina’s sovereignty and blaming past governments for the crisis.

“All Argentines know that we are going to appeal this ruling in all the appropriate instances to defend the national interests,” Milei declared. He argues that giving up the YPF shares would violate Argentine law, which requires congressional approval for such a move.

The legal basis for the US court’s involvement lies in Argentina’s own agreements. When YPF was partially privatized, Argentina accepted that disputes involving the company could be settled in New York courts and waived some sovereign immunity protections.

Because YPF is also traded on the New York Stock Exchange, the US court has jurisdiction. For Milei, surrendering YPF is unthinkable. The company is the backbone of Argentina’s energy sector and a pillar for any hope of economic recovery.

Losing it would cripple the government’s ability to manage the economy and pay its debts. The president’s refusal to comply is about more than politics—it is about survival for Argentina’s state finances and future.

More: Argentina news in English, every day from The Rio Times.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error