Argentina directed to sell majority ownership of oil company YPF, as mandated by court order in the United States.
A U.S. federal court has ordered Argentina to transfer its 51% stake in the century-old oil firm YPF as partial payment of a $16.1 billion judgment awarded to minority investors Petersen Energía Inversora and Eton Park Capital.
The ruling, made by Manhattan U.S. District Judge Loretta Preska in July 2025, follows a 2023 judgment recognising Argentina owed this sum after it expropriated YPF shares in 2012 without compensating these shareholders properly. Argentina has been given 14 days to transfer the shares into a custody account managed by BNY Mellon to satisfy part of the debt.
The Argentine government, led by President Javier Milei, has announced its intention to appeal the ruling, citing national interests. The dispute stems from Argentina’s 2012 seizure of the 51% YPF stake previously held by Spain’s Repsol, which did not include purchasing out minority shareholders Petersen and Eton Park.
The legal decision has created significant uncertainty around Argentina’s energy sector plans, especially regarding the Vaca Muerta shale reserves where YPF is a key operator. This uncertainty has affected YPF’s market value and investor confidence. The litigation funder representing the plaintiffs, Burford Capital, stands to receive a large portion of the awarded damages.
The case revolves around the renationalization of YPF in 2012, which was carried out under then-president Cristina Kirchner. YPF was privatised in the 1990s and gradually came under the control of Repsol. The Petersen Group and Eton Park Capital, which together held 25.4% of YPF's capital, filed suit in 2015, alleging that they did not receive proper compensation during the renationalization.
In addition to the ordered payments, Preska also ordered Argentina to pay about $6.85 billion in interest to Petersen Energia. U.S. District Judge Loretta Preska ordered Argentina to pay about $1.7 billion to Eton Park Capital. The total amount Argentina is ordered to pay, including damages, interest, and earlier agreed compensation, is over $16 billion.
In 2014, Repsol reached an agreement with Argentina for compensation of around $5 billion. The order is in response to a lawsuit filed by the two minority shareholders in 2015.
The current status of the legal case is that Argentina must relinquish 51% of YPF shares within 14 days for debt payment. The Argentine government, led by President Javier Milei, has stated that it will appeal the ruling, citing national interests, and blamed previous officials for the situation. The dispute is ongoing, but the U.S. court’s order represents a significant enforcement action that could have major implications for Argentina’s economy and energy sector.
In light of the U.S. District Court's order in July 2025, Argentina is required to transfer 51% of YPF's shares, which is part of their century-old oil firm, into a custody account managed by BNY Mellon to satisfy a portion of a $16.1 billion debt in the finance sector. This crisis, stemming from Argentina's expropriation of YPF shares in 2012, has sparked a debate within the industry, particularly with regards to the energy sector's future plans in Argentina, especially the Vaca Muerta shale reserves where YPF plays a significant role as an operator.
