In a blow to Milei, a US judge orders Argentina to turn over its
majority stake in state oil company
[July 01, 2025] By
DÉBORA REY and ISABEL DEBRE
BUENOS AIRES, Argentina (AP) — The fate of Argentina’s state-run oil
company was thrown into doubt Monday as a U.S. judge ordered the
cash-strapped country to give up its 51% controlling stake in YPF in
partial compensation for seizing the shares of former investors during
its 2012 nationalization of the energy group.
The ruling — a dramatic effort to enforce a $16 billion U.S. court
judgement against Argentina — presents a new headache for libertarian
President Javier Milei, the ideological foil for left-wing former
President Cristina Fernández de Kirchner who oversaw Argentina's
contentious takeover of YPF and ensuing legal battles during her tenure
(2007-2015). Milei vowed to appeal the ruling.
Fernández's abrupt move to seize control of YPF at the time helped bring
serial defaulter Argentina further infamy for abandoning its global
financial obligations. Milei inherited an economy in shambles after
decades of reckless state spending and campaigned on pledges to
privatize state companies.
In granting the request of former shareholders largely represented by
Burford Capital, which finances litigation in return for a share of the
winnings, Judge Loretta Preska of the Southern District of New York gave
Argentina two weeks to transfer its shares in YPF to Bank of New York
Mellon Corp, the major U.S. custody bank, according to the ruling seen
by The Associated Press.

Because YPF is listed on the New York Stock Exchange, the plaintiffs
could file the lawsuit in a U.S. district court. Shares of YPF closed
down 5.6%.
The judgement stems from a long-running legal case that in 2023 saw
Judge Preska find Argentina liable for $16.1 billion in damages and
interest. The plaintiffs argue that the government should have launched
a tender offer for stakes held by minority shareholders.
Milei, whose government has struggled to build up depleted foreign
reserves, has vowed to appeal the ruling “to defend national interests"
and blamed the problem on his political rivals.
[to top of second column] |

Supporters of an oil nationalization bill proposed by Argentina's
President Cristina Fernandez wave flags that read in Spanish: "Fight
and return YPF," outside Congress in Buenos Aires, Argentina, April
25, 2012. (AP Photo/Natacha Pisarenko, File)
 “More than 10 years have passed, and
we Argentines continue to suffer the consequences of the worst
government in Argentine history,” he wrote on social media platform
X.
Marcelo J. García, Director for the Americas at the New York-based
Horizon Engage risk consultancy, said the ruling was “a reminder for
the Milei administration that the country’s problems will not go
away just because he blames the opposition for them.”
“Control of YPF is important for Milei; that’s why an appeal is the
only option for him,” he added.
Paying up and losing the controlling stake in YPF — which has become
a pillar of the economy — would cripple Argentina at a crucial
moment for Milei's government.
YPF has accelerated its drive to develop the country's huge reserves
of shale gas in the Vaca Muerta field in Argentine Patagonia. Crude
production at Vaca Muerta has steadily climbed, hitting record
production in May at 448,000 barrels per day, 22.5% more than the
same month in 2024, according to official data.
In 2024, YPF notched a net profit of almost $2.4 billion, up from a
$1.3 billion loss the year before.
Milei has hoped to leverage investments in the Vaca Muerta field to
cure the nation's long-standing fiscal weakness and pay its massive
deficits.
All contents © copyright 2025 Associated Press. All rights reserved |