MercoPress. South Atlantic News Agency

New York court overturns $16 billion ruling against Argentina in YPF expropriation case

The court held that trial judge Loretta Preska misinterpreted Argentine law by treating YPF's bylaws as a bilateral contract

The U.S. Court of Appeals for the Second Circuit in New York overturned on Thursday the ruling that required Argentina to pay over $16 billion in compensation to minority shareholders of YPF for the 2012 expropriation of the oil company. The decision, issued with one dissenting vote, represents Argentina's largest judicial victory abroad in over a decade of litigation.

The court held that trial judge Loretta Preska misinterpreted Argentine law by treating YPF's bylaws as a bilateral contract. “Plaintiffs' breach-of-contract damages claims against the Republic are not cognizable under Argentina's civil codes or under the public law governing expropriation,” the ruling states, ordering the case returned to the lower court.

The plaintiffs — Petersen Energía and Eton Park, backed by British litigation funder Burford Capital — had argued that Argentina failed to offer them the same terms as Spain's Repsol when the government of Cristina Fernández de Kirchner expropriated 51% of the oil company's shares. Preska had ruled in their favor in 2023, ordering payment with interest at 5.42% annually.

Argentina's lead attorney, Robert J. Giuffra Jr. of Sullivan & Cromwell, said the ruling “fully vindicates Argentina's position” and noted that Burford had acquired the litigation rights “for a mere 15 million euros and sought to turn U.S. courts into a casino through its own interpretation of Argentine law.” Following the decision, Burford's shares plunged over 40%, while YPF's stock rose 5%.

President Javier Milei celebrated the ruling on social media and in a national broadcast, calling it a “historic decision” and stating that the payment Argentina avoids is equivalent to “70 million minimum pensions.” Milei blamed Fernández de Kirchner and current Buenos Aires Governor Axel Kicillof — who served as economy minister at the time of the expropriation — and announced he would send Congress a bill to reform the expropriation law.

GANAMOS EN EL JUICIO DE YPF...!!!
TMAP.
MAGA.
VLLC! pic.twitter.com/OwNnppGr8p

— Javier Milei (@JMilei) March 27, 2026

However, international litigation specialist Sebastián Maril warned that the case “is not legally over.” The plaintiffs can request an en banc review by the full Second Circuit or, as a final recourse, appeal to the U.S. Supreme Court. Maril also pushed back on attributing credit to the current government: “Four governments have come and gone since this case began, and all four maintained the same strategy. The credit belongs to Argentina's Solicitor General's office.”

The analyst noted the ruling could set a complex precedent for international investors, given that YPF's bylaws predated the expropriation law passed by Argentina's Congress, potentially opening the door for other governments to follow similar steps.

The decision arrives at a politically convenient moment for Milei, whose image has been damaged in recent weeks by the judicial investigation into the $Libra crypto scandal, which the president promoted on social media, and questions about the spending of his Cabinet Chief, Manuel Adorni.