US Judge Orders Argentina to Surrender Control of YPF Amid $16 Billion Legal Dispute
A US federal judge has ordered Argentina to transfer its 51% controlling stake in the state-run energy company YPF, escalating a decade-long legal battle stemming from the country’s 2012 nationalization of the firm, the Associated Press reports.
The ruling marks a significant development in efforts to enforce a $16.1 billion judgment against Argentina and introduces fresh challenges for President Javier Milei’s administration.
Judge Loretta Preska of the Southern District of New York issued the order on Monday, giving Argentina two weeks to turn over its shares to Bank of New York Mellon Corp., a major US custody bank. The decision was prompted by a request from former YPF shareholders, represented largely by Burford Capital, a litigation finance firm that backed the lawsuit in exchange for a portion of the potential payout.
The dispute originates from Argentina’s decision under then-President Cristina Fernández de Kirchner to expropriate YPF from Spanish energy company Repsol without offering to buy out minority shareholders — a step plaintiffs argue violated standard legal procedures. That 2012 move drew widespread criticism and added to Argentina’s reputation for financial unpredictability.
Now, President Milei — who campaigned on a platform of economic liberalization and reducing state control — is faced with the possibility of losing control over one of Argentina’s most strategically important assets. His government has pledged to appeal the ruling, with Milei stating it would do so “to defend national interests.” He attributed the court battle to the legacy of previous administrations, calling Fernández’s government “the worst in Argentine history.”
While Milei distances his administration from the original dispute, the outcome could have direct implications for his economic agenda. Control over YPF is central to Milei’s broader strategy, particularly in developing the Vaca Muerta shale formation in Patagonia — one of the world’s largest reserves of unconventional oil and gas. In May 2025, oil production at Vaca Muerta hit a record 448,000 barrels per day, marking a 22.5% increase compared to the same month the previous year.
YPF posted a net profit of nearly $2.4 billion in 2024, a sharp turnaround from a $1.3 billion loss the year before. Analysts view the company as vital to any effort to stabilize Argentina’s economy, which continues to face inflation, high debt, and limited foreign reserves.
The ruling also carries potential political ramifications. Marcelo J. García, Director for the Americas at Horizon Engage, noted that while Milei has blamed past leaders for the situation, the consequences now fall squarely on his government.
“Control of YPF is important for Milei; that’s why an appeal is the only option for him,” García said.
Shares of YPF, which is listed on the New York Stock Exchange, fell 5.6% following the ruling.
