MercoPress. South Atlantic News Agency

US judge rules against Argentina in YPF restatization case

The Argentine State retook control of YPF during CFK's second presidency when Kicillof was economy minister

Judge Loretta Preska of the Southern District Court of New York ordered Argentina to transfer 51% of YPF shares to an escrow account to settle a US$16.1 billion judgment in favor of Burford Capital and Eton Capital, stemming from the 2012 expropriation of the oil company. The ruling, which Argentina may appeal, surprised the government, as even the US Department of Justice opposed it. The decision led to a sharp decline in YPF shares (1.4% on Wall Street, 3% locally) and a 2% drop in the Merval index.

President Javier Milei blamed former Economy Minister Axel Kicillof for the ruling, calling him responsible for the nationalization that led to the lawsuit. Milei announced an appeal to defend national interests.

Kicillof, now Buenos Aires governor, criticized the ruling as an attack on Argentina’s sovereignty and accused Milei of aligning with foreign interests, noting his frequent US visits and plans to privatize the oil company.

The Justicialist (Peronist) leader defended the 2012 nationalization, emphasizing YPF’s role, and vowed to resist the transfer, declaring, “YPF is not for sale.”

The case, driven by Burford Capital, which bought litigation rights, is seen as pressure to negotiate. Argentina argues the shares, registered in Buenos Aires, are not subject to US jurisdiction. The ruling cites the Foreign Sovereign Immunities Act’s commercial exception, rejecting Argentina’s immunity claims.

”The decision is completely unprecedented (which is why the US Department of Justice opposed it in its amicus brief supporting the Argentine defense's position). It can be appealed, and Preska herself, or in her case the Court of Appeals, should suspend the effects of this decision,“ an analyst quoted by Buenos Aires media noted.

Milei said Preska's decision was ”a ruling against Kicillof,“ whom he held accountable. ”The fact that the country has reached this situation is the direct responsibility of the useless Soviet“ during ”the second presidency of the convicted [Cristina Fernández de Kirchner] CFK,“ the president argued on social media.

”Unfortunately, it wasn't enough for him to ruin the Argentine economy, so now he's taking care of destroying the province of Buenos Aires,“ he added regarding his fellow economist, whom he once dubbed ”Stalin's protégé.“

”More than ten years have passed, and Argentines continue to suffer the consequences of the worst government in Argentine history,“ Milei insisted.

Meanwhile, Preska's ruling was ”legal nonsense and an intolerable interference with our sovereignty,“ argued Kicillof while accusing Milei of siding with foreign powers.

”The most serious and surprising thing is not the ruling or the behavior of this judge; the most dangerous thing is that the Argentine president himself chooses to side with foreign powers and not with the national interests he should represent and protect,“ Kicillof argued on X.

”It doesn't take a very deep investigation to see the link between our president's passion for the US and this news. Some people still wonder why Milei travels so much to the country where this ruling came from; it's very noticeable...,“ the Governor of Buenos Aires went on.

”At this point, there is no doubt that this 'national' government does not defend Argentina: it defends the interests of the United States and foreign finance and companies,“ Kicillof also pointed out while noting that La Libertad Avanza's José Luis Espert had admitted that the Government sought to privatize YPF.

”Since its recovery, the company has returned to production, investment, growth, and job creation. Vaca Muerta has become a potential that everyone recognizes because YPF recovered. Above all, YPF is once again at the service of national development. Now they are coming for that,” Kicillof also recalled.