The US government announced that it will support Argentina's claim in the YPF case.

In a significant diplomatic and judicial signal supporting Javier Milei's administration, the United States government announced that it will intervene in favor of Argentina in one of the chapters of the multi-million dollar lawsuit over the expropriation of YPF.

Through the Department of Justice (DOJ), Donald Trump's administration will submit an amicus curiae brief to the United States Court of Appeals for the Second Circuit in New York, requesting that the execution of Judge Loretta Preska's ruling ordering the transfer of 51% of the oil company's shares to Burford Capital be suspended.

This action doesn't yet constitute an official position on the merits of the case (the USD 16.1 billion judgment), but it does seek to halt the transfer of shares while Argentina's appeal against the adverse 2023 ruling moves forward.

The YPF case, an unprecedented legal dispute

The lawsuit over the expropriation of YPF originated from the decision by the convicted Cristina Kirchner's government to nationalize the company in 2012 without launching a public tender offer (OPA) as required by the bylaws. The litigating fund Burford Capital purchased the rights to litigate from the former shareholders Eskenazi and later obtained a favorable ruling at first instance.

In September 2023, Judge Preska ordered Argentina to pay more than 16 billion dollars. Additionally, in a separate chapter of the case, she ordered the transfer of 51% of YPF's shares to the plaintiff, something Argentina is trying to prevent while the case remains on appeal.

What United States support means

The Department of Justice's filing doesn't solve the case, but it carries political and legal weight, as it involves an actor with strong influence before the New York judiciary. According to analyst Sebastián Maril, CEO of Latam Advisors, "the intervention is most likely aimed at influencing the Court to suspend the execution of the ruling while the appeal is being processed."

However, the support doesn't extend to the main USD 16.1 billion judgment, nor to the appeal regarding the order to transfer shares, at least for now.

For Argentina, the support from the United States government represents progress in its legal and diplomatic strategy, in a lawsuit that could still extend throughout 2025 and part of 2026.