MercoPress. South Atlantic News Agency

YPF legal saga: Irish court rules in favor of Argentina

There are no assets to seize in Ireland, the judge argued

An Irish court has ruled in favor of Argentina, rejecting a request by plaintiffs to enforce a US$16 billion New York judgment in that country. The plaintiffs in the YPF expropriation lawsuit sought to recognize and enforce New York Judge Loretta Preska's ruling in various foreign jurisdictions, namely England, France, Luxembourg, Australia, Canada, and Cyprus. However, the Irish court's decision was the first to deny this request.

Argentina's National Treasury Attorney's Office (PTN) considered the decision a “favorable precedent,” grounded on the fact that Argentina and YPF have no seizable assets in Ireland.

“The Irish decision is the first ruling in the context of these international enforcement attempts and represents a favorable precedent for the Argentine Republic,” the PTN said.

“This government, under the leadership of President Javier Milei, will continue to defend national interests with firmness and determination. This ruling confirms the soundness of the technical defense deployed and our commitment to protecting the nation's strategic assets,” it added.

Judge Eileen Roberts concluded that enforcing the judgment would be an unnecessary use of judicial resources with no practical benefit to the plaintiffs, as there was no evidence that Argentina would have assets in the country in the near or medium term.

Last week, the Second Circuit Court of Appeals in New York suspended a prior order to hand over YPF shares as payment in the lawsuit. While the plaintiffs, represented by the law firm Burford Capital, plan to continue their efforts to enforce the judgment in other countries, Argentina has announced its intention to appeal to the US Supreme Court if necessary.

“While the Irish court did not rule on the substance of the case, it is surprising that Ireland attaches so little importance to its role in the global financial system that it leaves the resolution of these matters to the courts of Cyprus, Luxembourg, and France. That said, we respect the Irish court's decision to conserve its resources while the Second Circuit appeal is pending in late October,” a spokesperson for Burford noted.