Argentina received an encouraging news within the framework of the judicial case faced in the United States for the expropriation of YPF. The Court of Appeals of the Second New York circuit issued a favorable ruling that will allow the country to appeal without having to deliver shares of the oil company or other assets, a decision that represents a strategic relief in a dispute that has captured international attention.
The cause originated after the nationalization of YPF In 2012, when the Argentine State acquired 51% of the company’s shares, which were in the hands of Repsol and the Petersen group. The latter, through its investment funds, initiated a lawsuit in US courts claiming that Argentina did not comply with the company’s statute, which demanded to make a public offering offer (OPA) to the rest of the shareholders.
In September 2023, Judge Loretta Presska, from the Southern District of New York, failed against Argentina and ordered the payment of more than 16,000 million dollars to the plaintiffs. The ruling generated concern about its economic and political implications, and the Argentine government initiated an appeal before the court of the second circuit.
Now, that court has decided that Argentina can continue with the appeal process without having to deliver assets as a guarantee, which means that it should not deposit actions of YPF nor other assets while the judicial instance is resolved.
This decision is key, since it prevents the country from facing precautionary measures that could affect its economic sovereignty. Another relevant aspect of the ruling is that the Court accepted the participation of the United States Government as “Amicus Curiae” (friend of the court) in support of the Argentine position.
This figure allows third parties with interest in the case to present legal arguments to help the court make a more informed decision. The intervention of the US Department of Justice is seen as a significant diplomatic gesture, since it supports the position that the American courts must be prudence when judging sovereign acts of other states.
Litigation
In its presentation, the government of USA. He warned about the risks that these types of litigation affect international relations and global legal stability. With this ruling, Argentina wins time and margin of maneuver.
The country’s defense, headed by the Cleary Gottlieb Steen & Hamilton legal study, may present its arguments before the Court of Appeals without the pressure of delivering assets. The legal team will seek to reverse the Preska ruling, arguing that the expropriation of YPF It was a sovereign act and, therefore, does not correspond to be tried under private commercial regulations.
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