US Supports Argentina in YPF $16 Billion Legal Dispute

The U.S. government, under President Donald Trump's administration, has filed a brief supporting Argentina's request to temporarily block a court order requiring it to transfer its 51% controlling stake in oil and gas company YPF to satisfy a $16.1 billion judgment won by investors Petersen Energia Inversora and Eton Park Capital Management. The Department of Justice argues that enforcing the turnover order could irreparably harm Argentina’s economy and U.S.-Argentine relations, and might violate sovereign immunity principles, setting a risky precedent for international asset seizures. Argentina contends that relinquishing its YPF shares would destabilize its economy and is barred by its own laws from transferring the shares without congressional approval. The investors accuse Argentina of delay tactics but have expressed willingness to accept safeguards to prevent irreversible outcomes if Argentina prevails on appeal. The legal battle stems from Argentina’s 2012 nationalization of YPF, which led to ongoing disputes over compensation for minority shareholders, highlighting tensions between investor rights and national sovereignty over key resources. This case is closely watched for its implications on international investment law and the limits of court authority over state-owned assets.