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4w ago

U.S. Judge Orders Argentina to Cede YPF Majority Stake

President Javier Milei vowed to appeal the ruling following a 5.6% slide in YPF shares.

Cars queue outside a YPF gas station in Buenos Aires, Argentina, December 13, 2023. REUTERS/Agustin Marcarian/File Photo
Argentina has been ordered by a US judge to sell its majority stake in oil firm YPF, a move immediately criticized by the South American country's President Javier Milei

Overview

  • U.S. District Judge Loretta Preska gave Argentina two weeks to transfer its 51% stake in YPF to Bank of New York Mellon to satisfy a $16.1 billion judgment.
  • The order enforces a court award for investors represented by Burford Capital who sued over the 2012 nationalization of YPF.
  • President Javier Milei pledged to challenge the decision in court to defend what he called Argentina’s national interests.
  • Shares of YPF closed down 5.6% on the New York Stock Exchange after the ruling underscored investor unease.
  • Losing control of YPF could undermine Argentina’s plan to leverage record Vaca Muerta output to shore up its depleted foreign reserves.