Washington Sides With Buenos Aires in $16 Billion YPF Battle Over Control of Oil Giant

The US Department of Justice has stepped in to support Argentina in its ongoing legal struggle with international investment funds over YPF, the country’s largest oil company.

This legal fight started when Argentina took control of YPF in 2012 by buying a 51 percent stake from Spanish company Repsol.

While Repsol received about $5 billion as compensation, other shareholders, including Burford Capital and Eton Park, argued that Argentina broke fair treatment rules set in YPF’s bylaws.

These US-based funds claim Argentina unfairly ignored minority shareholder rights and say the country now owes them $16.1 billion in damages—nearly as much as Argentina’s last international loan.

In 2023, a US judge ordered Argentina to pay this massive sum, and when the country declined, the judge threatened to force Argentina to turn over its controlling 51 percent stake in YPF as payment.

Argentina says giving up its YPF shares would severely hurt its ability to manage energy resources and damage the struggling economy.

The government also says it cannot transfer the shares without congressional approval, as Argentine law requires. The US government has now filed legal arguments to put the ruling on hold while Argentina appeals.

American officials warn that forcing a country to hand over major state-owned assets could violate international legal rules called “sovereign immunity” and might set a risky precedent for the US and other countries in the future.

As the appeal goes forward, the execution of the ruling is temporarily suspended by a New York court. This legal drama matters because it tests how far the courts can go in seizing state-owned assets across borders.

It also raises important questions about the rights of investors versus the rights of countries to control their most important resources. Both Argentina’s economic future and international investment rules hang in the balance as the world watches the case unfold.

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