The New York Court of Appeals reversed the first instance ruling and rescinded the million-dollar conviction against Argentina for the expropriation of YPF.
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In a key turning point for the Argentine economy, the New York Court of Appeals for the Second Circuit overturned the ruling that forced the country to pay more than $16 billion for the expropriation of YPF in 2012.
The court found that the claims for damages presented by the plaintiff funds are not valid under Argentine law, implying a definitive blow to the trial ruling handed down by Judge Loretta Preska.
According to the ruling, lawsuits for breach of contract are not applicable in this case, since expropriation must be analyzed under the framework of Argentine public law and not as a simple contract between private individuals.
What the Court said: keys to the decision The
court was forceful in its analysis:
It
determined that the actions of the plaintiffs “are not knowable” under Argentine law, that is, they cannot be sued judicially
as they proposed.
He considered that the expropriation of YPF should be governed by Argentine public legislation, not by private contractual rules.
It reversed the previous ruling that had set compensation equivalent to almost 45% of the Argentine national budget.
As a result, the Court decided to overturn the judgment against Argentina and return the case for further action, rescinding the multi-million dollar conviction.
The burden of the past: the cost of Kirchnerism
The YPF case has its origin in the expropriation promoted in 2012 by the government of Cristina Fernández de Kirchner, a decision that was strongly questioned because of its
impact on legal security and investor confidence.
For years, that process led to international litigation that jeopardized the country's finances.
The ruling now makes it clear that:
Kirchnerism's judicial strategy was deficient and costly The
country was exposed to unprecedented condemnation An
international conflict was generated that is only now beginning to be resolved
Milei capitalizes on the judicial victory The government of Javier Milei
receives this decision as a key support in its policy of
economic order and international reintegration.
The annulment of the ruling:
Reduces a gigantic potential liability for Argentina Improves the
country's perception of global investors
Reinforces the narrative of change with respect to past interventionist policies
Who are Ibarzabal, Amerio and Quirno: the technical nucleus that carried out the Argentine defense in the YPF case The result in the
United States courts was not a coincidence, but the consequence of a sustained legal strategy by a key government team. María Ibarzabal, Legal and Technical Secretary and main regulatory architect of the management, was under the direction of María Ibarzabal, together with Sebastián Amerio, Attorney of the Treasury and directly responsible for the defense of the State in international litigation. Foreign Minister Pablo Quirno joined that nucleus, who articulated the diplomatic dimension of the case and the link with the US courts. This technical triangle, backed by his teams, worked for more than two years to build the arguments that finally made it possible to reverse the conviction and avoid a multimillion dollar impact
for Argentina.
A new international context: Trump's role The
ruling also occurs in a different geopolitical context, with a United States led by Donald Trump, whose pro-market vision aligned with the West creates a more favorable environment for countries that seek clear rules and
legal security.
This new scenario:
It favors judicial decisions that are more aligned with respect for international law
Reduces the influence of speculative litigation against sovereign States
Strengthens cooperation between Argentina and the United States
What can happen now
Although the decision represents a resounding
victory, the case could still have new judicial instances. However, the core of the claim — the multi-million dollar compensation
— was severely weakened.
For Argentina, this means:
Immediate financial relief
More room to move forward with economic reforms
A positive signal for international markets
The ruling of the New York Court of Appeals marks a turning point in the YPF case. The annulment of the $16 billion conviction represents not only a judicial victory, but also a political and
economic one.
In a context of a change of direction under Javier Milei and with an international scenario more aligned with the market values promoted by Donald Trump, Argentina is able to overcome one of the greatest financial risks in its recent history.
