U.S. Court upholds favorable ruling for Argentina in YPF litigation

A U.S. Court of Appeals has upheld a ruling favorable to Argentina in the contentious lawsuit stemming from the 2012 nationalization of the oil company YPF.

The Second Circuit Court of Appeals in New York rejected a request by the British investment fund Burford to review a decision made in March that favored Argentina. This rejection reaffirms a previous judgment by a three-judge panel that overturned an initial $16.1 billion condemnation against Argentina. The lawsuit was initiated by Burford and the American firm Eton Park after they acquired the litigation rights from the Petersen group, which held a 25% stake in YPF at the time of expropriation.

According to the Treasury Procuratorate of Argentina, the court's decision constitutes a significant endorsement of the country's legal position. The Treasury Procuratorate is responsible for the State's legal defense. The ruling is seen as a reaffirmation of the favorable outcome achieved during the appeal process.

Argentine President Javier Milei celebrated the decision, sharing a message from YPF President Horacio Marín with the exclamatory "¡Vamos YPF carajo!" The litigation traces back to the 2012 nationalization of YPF, Argentina's primary hydrocarbon producer, under the government of Cristina Fernández. During this period, the Argentine state took control of 51% of the shares held by the Spanish company Repsol.

The plaintiffs, Burford and Eton Park, argue that the Argentine state should have launched a public acquisition offer for the remaining company shares upon nationalization. In September 2023, a New York federal judge had ordered Argentina to pay $16.1 billion, but this decision was reversed in March by the Court of Appeals. Burford had indicated that if this review request was denied, they could seek permission to appeal to the U.S. Supreme Court. The British firm also announced plans to pursue arbitration at the International Centre for Settlement of Investment Disputes (ICSID), invoking bilateral investment treaties signed by Argentina.

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Let's go YPF, damn it!