Argentina achieves favorable ruling in YPF case: order to deliver 51% of shares suspended

The New York Court of Appeals granted a stay that allows the country to appeal without transferring its assets in the state oil company

Argentina obtained a favorable decision from the U.S. Court of Appeals for the Second Circuit in the YPF case, which suspends the court order that forced the country to hand over 51% of the shares of the state oil company as part of the payment for the nationalization carried out in 2012.

The U.S. court "accepted Argentina's request, so the June 30, 2025 order is suspended" while the appeal filed by the Argentine government is resolved. This decision represents a significant relief for national authorities, who had warned about the practical impossibility of complying with an adverse ruling.

Context of the dispute

The case originates in the nationalization of YPF carried out on April 16, 2012 during the government of Cristina Fernández de Kirchner, when the Argentine State expropriated 51% of the shares that belonged to the Spanish Repsol. In September 2023, Judge Loretta Preska ordered the government to pay US$ 16.1 billion for the nationalization of YPF: US$ 14.4 billion corresponding to the Petersen Group and US$ 1.7 billion to Eton Park.

Given Argentina's inability to meet the monetary payment, the magistrate had ordered last June that the country transfer 51% of its shares in YPF to a global custody account at the Bank of New York Mellon as a way to guarantee compliance with the ruling.

Position of the Argentine government

The chief of staff, Guillermo Francos, had warned days ago that "An adverse ruling is unfulfillable," marking the government's firm position regarding the impossibility of complying with an order that would imply the loss of control of the country's main energy company.

The Ministry of Economy immediately celebrated the decision of the appeals court, which also accepted that the United States government participate as "amicus curiae" supporting the Argentine position in the judicial process.

Implications of the ruling

The suspension granted by the Court of Appeals allows "The government's shares in the oil company to remain in the Caja de Valores while the Court resolves the appeal," according to analyst Sebastián Maril of Latam Advisors.

This decision prevents, for the time being, Argentina from losing control of YPF, a strategic company for the country's energy sovereignty and key in the development of unconventional resources in Vaca Muerta.

The judicial process will continue in the appeal instances, where Argentina will seek to reverse the millionaire sentence imposed in the first instance. Meanwhile, the country maintains full control of the state oil company, whose shares will remain in Argentine custody during the appeal process.

The decision marks an important respite for the Argentine government in one of the most complex international disputes facing the country, with direct implications for one of its most valuable energy assets.

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