A New York appeals court has overturned a $16.1 billion judgment against Argentina, striking down a lower court's order to compensate former shareholders of the nationalised energy company YPF. The decision was celebrated by Argentine President Javier Milei, who called it 'the greatest judicial victory in national history'.
The US Court of Appeals for the Second Circuit reversed a 2023 ruling by District Judge Loretta Preska, which had ordered Argentina to pay investors Petersen Energía and Petersen Energía Inversora for the seizure of a majority stake in YPF in 2012. The appeals court had previously placed a hold on an order requiring Argentina to transfer its 51% controlling stake in YPF as partial compensation.
President Milei took aim at former left-wing leader Cristina Fernández de Kirchner, whose administration oversaw the nationalisation. Kirchner has been under house arrest since 2025, following a six-year prison sentence for corruption. Milei, who has pledged to privatise state-owned companies, said his government had 'cleaned up the mess' left by his predecessor.
The nationalisation of Argentina's largest energy company damaged the country's international standing, reinforcing its history of defaulting on financial obligations. Plaintiffs were able to sue YPF in the US because the company is listed on the New York Stock Exchange. Since nationalisation, YPF has developed the Vaca Muerta shale field, with crude production reaching nearly 600,000 barrels per day in January, about 68% of national output. In 2025, YPF reported a profit of $5 billion, its highest in a decade.
