US Judge Temporarily Blocks Argentina YPF $16B Stake Transfer

A U.S. federal judge has temporarily delayed Argentina's court-ordered transfer of its 51% controlling stake in state-run oil company YPF, granting an extension until July 17 to allow Argentina to pursue an appeal. This legal battle stems from Argentina's 2012 nationalization of YPF shares from Spain’s Repsol without a tender offer to minority shareholders, Petersen Energia and Eton Park Capital, who were awarded $16.1 billion in damages backed by litigation funder Burford Capital. Argentina argues the shares are protected under the U.S. Foreign Sovereign Immunities Act and that surrendering control would destabilize its economy and violate its sovereignty, warning of irreversible harm if forced to comply now. Judge Loretta Preska criticized Argentina for abusing court accommodations but permitted a short-term reprieve for the appeal, with the appeals court potentially granting further delay. YPF is critical to Argentina’s energy sector and economic recovery, leading development of the Vaca Muerta shale basin and several major projects. President Javier Milei’s government is facing economic challenges including inflation, a debt crisis, and foreign currency shortages while seeking to defend its control over YPF amid mounting legal pressure.