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3w ago

U.S. Judge Orders Argentina to Transfer Majority Stake in YPF

The New York decision enforces a $16 billion award from the 2012 YPF renationalization, testing President Milei’s economic strategy.

Cars queue outside a YPF gas station in Buenos Aires, Argentina, December 13, 2023. REUTERS/Agustin Marcarian/File Photo
Petrol prices are seen on a billboard at a YPF gas station, as Argentina is battling with an annual inflation heading towards 200%, in Buenos Aires, Argentina December 29, 2023. REUTERS/Martin Cossarini/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
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Overview

  • Judge Loretta Preska gave Argentina two weeks to transfer its 51 percent YPF stake to Bank of New York Mellon as custodian for plaintiffs in partial satisfaction of a $16.1 billion judgment.
  • The case stems from Argentina’s 2012 seizure of YPF assets from Repsol and a 2023 ruling that found the government liable for compensating minority shareholders.
  • President Javier Milei promptly vowed to appeal the order in all appropriate courts to defend national interests.
  • Shares of YPF fell more than 5 percent on the New York Stock Exchange after the court mandated the transfer.
  • The ruling complicates Milei’s plan to leverage YPF’s Vaca Muerta shale output for foreign-currency revenue and advance his privatization reforms.