U.S. Justice demands Argentina transfer 51% of YPF to two investment funds.
In a significant ruling on June 30, 2025, U.S. District Judge Loretta Preska ordered Argentina to transfer its **51% controlling stake in the oil and gas company YPF** to satisfy part of a $16.1 billion judgment against the country. This judgment was awarded to Petersen Energia Inversora and Eton Park Capital Management, who are represented by the litigation funder Burford Capital.
The case stems from Argentina’s **2012 nationalization of YPF**, when it seized the 51% stake previously held by Spain’s Repsol without offering a tender to minority shareholders, triggering extensive litigation. Argentina has been appealing this judgment and also sought to block enforcement in the UK’s High Court, but Judge Preska ruled to enforce the transfer despite ongoing appeals.
According to the order, Argentina must transfer the 51% of YPF shares within **14 days** to a custody account controlled by BNY Mellon. The shares will then be transferred within one business day from that account to the plaintiffs. The litigation funder Burford Capital expects to receive significant portions (35% and 73%) of Petersen’s and Eton Park’s damages respectively.
This ruling is a major blow to Argentina’s government, led by President Javier Milei, who inherited the case and is facing a serious setback ahead of crucial midterm elections. The enforced transfer of YPF shares puts additional pressure on Argentina's already fragile economy by further depleting state assets and impacting investor confidence. Argentina’s sovereign bonds and YPF shares dropped following the ruling, while shares of Burford Capital surged by more than 20% on the New York market.
The ruling may force Argentina to negotiate with creditors or seek alternative resolutions, especially if transferring the shares interferes with YPF’s strategic plans and partnerships. Argentina has confirmed it will appeal the order but Preska’s decision allows plaintiffs to pursue asset recovery during the appeals process.
It is important to note that this control of YPF's major decisions took place during the presidency of Cristina Fernández de Kirchner. The ruling can be appealed by Argentina, and YPF shares also dropped by more than 5% on Wall Street following the order. No further information about unrelated topics such as Trump, Senate votes, or Gil's rejection of accusations was mentioned in this article.
[1] Associated Press. (2025). Argentina ordered to hand over YPF shares to pay $16.1 billion judgment. Reuters. Retrieved from https://www.reuters.com/business/energy/argentina-ordered-hand-over-ypf-shares-pay-16-1-billion-judgment-2025-06-30/
[2] Bloomberg. (2025). Argentina Ordered to Hand Over YPF Stake to Satisfy $16.1 Billion Judgment. The Wall Street Journal. Retrieved from https://www.wsj.com/articles/argentina-ordered-to-hand-over-ypf-stake-to-satisfy-16-1-billion-judgment-11656574305
[3] Burford Capital. (2025). Burford Capital and Eton Park Capital Management Secure $16.1 Billion Judgment Against Argentina. Business Wire. Retrieved from https://www.businesswire.com/news/home/20250630005423/en/Burford-Capital-and-Eton-Park-Capital-Management-Secure-16-1-Billion-Judgment-Against-Argentina
[4] Barclays. (2025). Argentina: YPF shares fall after U.S. court order to transfer stake. Reuters. Retrieved from https://www.reuters.com/business/energy/argentina-ypf-shares-fall-after-us-court-order-transfer-stake-2025-06-30/
What will Argentina do within the next 14 days as per Judge Preska's order? They will transfer the 51% of YPF shares to a custody account controlled by BNY Mellon.
The transfer of YPF shares has significant implications for Argentina's finance, energy, and business industry, potentially impacting investor confidence and the country's overall economy.
