In a key development in the prolonged international litigation over the Kirchnerist expropriation of YPF, the United States Second Circuit Court of Appeals has ruled that Argentina may await the resolution of its appeal regarding the delivery of the company's shares without having to hand over those securities or provide other guarantees, suspending Judge Loretta Preska's order from last June 30.
This decision represents significant relief for the Argentine state, which faces multi-million dollar compensation for the failed nationalization of the company in 2012 under the corrupt and convicted Cristina Kirchner government.
According to the Court's ruling, the shares corresponding to the Argentine state may remain deposited in the Caja de Valores while the appeal is solved.
This means that Argentina temporarily retains control over its majority stake in YPF, immediately avoiding any direct impact on the company's management and operations, as well as on its strategic projects, including the development of Vaca Muerta, one of the world's most important unconventional hydrocarbon reserves.
Meanwhile, the participation of the United States Department of Justice as amicus was also authorized, which had supported Argentina's position in the YPF trial.
In addition, the Court determined that the country may file its appeal without having to provide additional financial guarantees. This measure gives Argentina legal and economic leeway, allowing the government to prepare its defense in a more structured manner and without the pressure of having to comply with the initial order to transfer shares.
The legal dispute dates back to the expropriation of YPF in 2012, when the Argentine state acquired 51% of the shares of the company controlled by Repsol. Since then, minority shareholders have sued the country alleging violations of their rights, which led to Judge Preska's ruling ordering the transfer of the shares as compensation, valued at more than 16 billion dollars.
The Argentine government had previously warned about the economic and sovereignty risks that would result from the loss of control over YPF, emphasizing the strategic importance of the company in the exploitation of energy resources and in the national economy in general.
The Court of Appeals' decision offers, at least temporarily, relief from these concerns and marks another step in a judicial process that has had a significant international impact.
