US appeals court sides with Argentina

16/8/2025 6:30

A U.S. appeals court on

Friday granted Argentina's request to put on temporary hold a

judge's order that it turn over its 51% stake in oil and gas

company YPF to partially satisfy a $16.1 billion

judgment won by two investors.



In a brief order, the 2nd U.S. Circuit Court of Appeals in

Manhattan stayed U.S. District Judge Loretta Preska's June 30

turnover order while Argentina appeals.



Friday's order provides a reprieve for Argentine President

Javier Milei's government, which warned of irreparable harm and

economic instability if it gave up its stake in YPF, the

country's largest energy company.



Argentina is separately appealing the $16.1 billion

judgment, which Preska awarded in September 2023 to Petersen

Energia Inversora and Eton Park Capital Management.



The investors are represented by litigation funder

Burford Capital, which would share in their damages.



Lawyers for Petersen and Eton Park did not immediately

respond to requests for comment.



Friday's order did not provide reasons for the stay,

which should last at least a few months. Argentina's next legal

filing related to YPF is due on September 25, court records

show.



The dispute stemmed from Argentina's 2012 decision to

seize the YPF stake from Spain's Repsol without making

a tender offer to minority shareholders.



Argentina had argued that the YPF shares were immune

from turnover under the federal Foreign Sovereign Immunities

Act.



The U.S. government sided with Argentina, saying a

resolution of the dispute should not be rushed and potentially

interfere with relations between the countries.



Lawyers for the investors countered that a commercial

activity exception to immunity, together with Argentina's "many

years" of evasion, justified a turnover.



In her June 30 order, Preska said Argentina's control

over the YPF shares triggered the exception, and the country

could not simply invoke its own laws to prevent a turnover.



A spokesperson for the Argentine government said the

country welcomed Friday's order, and confident the $16.1 billion

damages award would also be overturned.