MercoPress. South Atlantic News Agency

U.S. again backs Argentina in YPF case, urging halt to “intrusive” discovery

This is not the first time Washington has intervened in Buenos Aires’ favor in the case

The U.S. government has filed a new memorandum before the Second Circuit Court of Appeals in New York backing Argentina’s request to suspend post-judgment discovery in the YPF expropriation case. Argentina’s Treasury Solicitor’s Office said the filing supports the emergency motion submitted on March 6 seeking to pause document production, a sanctions request and an evidentiary hearing scheduled for April.

According to the Argentine government, the Justice Department argued that the plaintiffs’ demands are “excessively intrusive” and raise concerns involving international comity, reciprocity and foreign policy. Washington’s position is that when litigation targets a sovereign state, courts should weigh not only the procedural relevance of discovery requests but also their potential diplomatic consequences and the reciprocal treatment the United States might face abroad.

The most sensitive issue now centers on the scope of discovery sought by the plaintiffs. Argentina has challenged requests for communications involving senior officials and for information about sovereign assets, including central bank gold reserves, arguing that such demands go beyond reasonable enforcement limits against a foreign state. The country’s motion seeks to freeze that phase while the main appeal and related enforcement disputes remain pending.

This is not the first time Washington has intervened in Buenos Aires’ favor in the case. In late February, the Justice Department had already filed another brief opposing contempt requests and questioning the breadth of discovery, signaling institutional continuity beyond the strictly commercial side of the dispute. Bloomberg Law reported then that the U.S. warned that aggressive enforcement measures against Argentina could affect its own sovereign interests in future litigation.

The background remains the US$16.1 billion judgment issued in 2023 by Judge Loretta Preska over the 2012 nationalization of YPF. Argentina appealed that ruling as well as other orders related to the possible turnover of its controlling stake in the oil company. Reuters reported in October that the Second Circuit is reviewing both the main judgment and related enforcement orders in what has become one of the most consequential sovereign litigation cases facing Javier Milei’s administration.