US appeals court overturns $16 billion judgment over Argentina energy company nationalization

BUENOS AIRES, Argentina (AP) — A New York appeals court on Friday struck down a $16.1 billion judgment against Argentina, overturning a lower court’s order to compensate former shareholders of the nationalized energy giant YPF, a decision that was celebrated by Argentine President Javier Milei.

In the latest ruling in the long-running legal case reviewed by The Associated Press, the U.S. Court of Appeals for the Second Circuit overturned a 2023 judgment in which U.S. District Judge Loretta Preska ordered Argentina to compensate investors — Petersen Energía and Petersen Energía Inversora — for the seizure of a majority share in YPF Energy in 2012.

“It’s historic, unthinkable, the greatest judicial victory in national history,” Milei posted on X.

The president also took aim at former left-wing leader Cristina Fernández de Kirchner, whose administration oversaw the nationalization of YPF.

“Because I’m Milei, I’ll say it the Milei way,” he wrote, adding that his government has “cleaned up the mess” left by the former leader.

Kirchner has been under house arrest since 2025, following a six-year prison sentence for corruption.

                        Related Stories
                    
                

        
    
    
    
    







    
        

                
                    



    
        


  




    




    




    




    




    




    




    




    



    




    
    
    
    

    

    





    
        

            
            
            Colombia holds ceremony for 69 killed in military plane crash
        

    

  

    

    
    







    
    
        
        
    
    
    
    
        

            2 MIN READ
        

    
    
    
    







    

    

    

    

    




                
            

    
        

                
                    



    
        


  




    




    




    




    




    




    




    




    



    




    
    
    
    

    

    





    
        

            
            
            Mexico says a third of 130,000 missing people might be alive, fueling criticisms by families
        

    

  

    

    
    







    
    
        
        
    
    
    
    
        

            3 MIN READ
        

    
    
    
    







    

    

    

    

    




                
            

    
        

                
                    



    
        


  




    




    




    




    




    




    




    




    



    




    
    
    
    

    

    





    
        

            
            
            Cuba’s president expresses concern over 2 missing aid sailboats headed to island
        

    

  

    

    
    







    
    
        
        
    
    
    
    
        

            1 MIN READ

In June last year, Judge Preska ordered Argentina to transfer its 51% controlling stake in YPF as a partial compensation to the plaintiffs. Two months later, the appeals court placed that order on hold.

Milei, who has struggled to rebuild depleted foreign reserves and has pledged to privatize state-owned companies, has frequently blamed his political opponents for the legal fallout from the YPF seizure.

The 2012 nationalization of Argentina’s largest energy company, further damaged Argentina’s international standing by reinforcing its history of abandoning its global financial obligations.

Plaintiffs were able to sue YPF in the U.S. because the company is listed on the New York Stock Exchange.

Since its nationalization, YPF has accelerated the development of Argentina’s vast shale gas reserves in the Vaca Muerta field in Patagonia. Crude production at Vaca Muerta has steadily climbed, reaching nearly 600,000 barrels per day in January, about 68% of national output. In 2025, YPF reported a profit of $5 billion, its highest level in the past 10 years.

Follow AP’s coverage of Latin America and the Caribbean at