The Trump administration gave strong support to Argentina in the YPF trial.

The Donald Trump administration has officially expressed to the courts its support for Argentina in the case regarding the expropriation of YPF, a lawsuit that has lasted a decade and for which the Argentine State was ordered in the first instance in 2023 to pay more than USD 16,000 million, due to irregularities in the nationalization of the oil company in 2012, during the administration of the corrupt Cristina Kirchner.

The United States intervened as amicus curiae, that is, as an interested party collaborating with the court, through a submission to the Second Circuit Court of Appeals in New York, with the aim of assisting the administration of Javier Milei. In the document, it recommended that the court “should stay the order to transfer (the YPF shares) pending the final resolution of Argentina's appeal.”

“The Argentine government has obtained the support of the United States Department of Justice in its request to suspend the order to deliver the YPF shares, issued by Judge Preska last June 30,” explained the National Treasury Attorney's Office, the agency responsible for coordinating the national government's legal defense.

“This is not a minor endorsement and should not be taken for granted. It is enough to recall that in 2019, during the presidencies of Macri and Trump, the United States Supreme Court requested the U.S. government's opinion on the jurisdictional immunity invoked by Argentina. Back then, the U.S. government appeared as amicus curiae and issued an opinion against our country,” stated the agency led by Santiago Castro Videla.

“The situation has changed. President Milei's administration has managed, in less than a year and under two different administrations (Biden and Trump), to have the United States Department of Justice support Argentina's position in this case. This is a significant event that reflects a coherent and clear foreign policy, aimed at defending the national interest, and also demonstrates the seriousness of the submissions and the strength of the legal arguments presented by the Argentine State,” they emphasized.

It is important to note that these types of statements are not binding, and judges may make decisions different from those suggested by the Department of Justice.

Meanwhile, as expected, this Thursday the beneficiaries of the judgment against Argentina submitted their arguments to prevent any delay in the execution of the court's decision.

The U.S. Argument

“This case highlights the government's strong interest in the proper application of the principles of foreign sovereign immunity under the Foreign Sovereign Immunities Act of 1976 (“FSIA”) and federal common law. These issues may have significant ramifications for United States foreign relations and affect the reciprocal treatment of the United States and its assets in the courts of other countries,” state the documents submitted by officials from the United States Department of Justice.

The documents also warn that Argentina could face irreparable harm if the stay is not granted, since, if the YPF shares are delivered to creditors in U.S. territory, “it could lose the ability to claim such property, even if it prevails on appeal.”

In addition, it is emphasized that requiring the country to post a bond during the appeal process would mean it must identify assets in the United States, which would be exposed to potential seizures.

U.S. officials also argue that there are reasons to believe that Argentina could succeed in its appeal, since the district court's order requiring the transfer of the shares doesn't conform to the aforementioned legal principles.

Meanwhile, they argue that staying the judgment would not cause real harm to the plaintiffs, given that “Argentina has indicated that it retains its shares in YPF and can't sell them without legislative authorization.”

The three briefs, one from each plaintiff, present similar arguments and bear the signatures of Jay Clayton, U.S. Attorney for the Southern District of New York, and Sean Buckley, Assistant U.S. Attorney.