In a surprising change of strategy, the plaintiffs who obtained a favorable ruling against Argentina for the expropriation of YPF in 2012 have informed the Second Circuit Court of Appeals in New York that they no longer seek to retain 51% of the shares of the state oil company.
This decision represents a significant shift in a legal battle that has lasted more than a decade because of Kirchnerism and that had jeopardized sovereignty over the country's main energy company.
The plaintiff group, led by the Burford Capital fund and the beneficiaries of Petersen Energía and Eton Park, notified the court in writing that they have no interest in managing an oil company and that they are willing to accept conditions that would allow the transfer of shares to be easily reversed if Argentina succeeds in its appeal.
La notificación del grupo demandante.
According to the court filing, "the plaintiffs have no interest in managing an oil company... they would accept reasonable conditions to ensure that the transfer of shares can be easily undone if necessary."
This new approach enables an alternative path in the dispute: it would allow Argentina to continue with its appeal without immediately handing over the share package in question, as long as the country offers a reasonable guarantee to ensure the future enforcement of the ruling, if it ultimately loses.
Nevertheless, the plaintiffs have categorically rejected the possibility of granting a total stay of the ruling without conditions. In other words, Argentina could not appeal "for free," and it would have to commit some type of financial backing or collateral while the process continues.
Javier Milei y Donald Trump.
The timing of the change is not coincidental. The Government of Donald Trump submitted an amicus curiae brief to the Court of Appeals this same week, supporting Argentina's position. In that document, the U.S. government argued that the forced delivery of the shares could violate the principle of sovereign immunity enshrined in the FSIA law, since the assets involved are not located in U.S. territory.
The decision is now in the hands of the three-judge panel of the Second Circuit, which must assess whether to grant the stay request and under what conditions. Meanwhile, the key date will be July 22, when Argentina must submit a counterproposal with the requested guarantees. If accepted, the enforcement of the ruling for USD 16.1 billion could be postponed indefinitely.
This shift represents a partial relief for the Argentine Government, which is in the midst of an economic stabilization program and could not afford a direct loss of control over YPF. However, the legal battle is still far from over.
