A federal appeals court has overturned a $16.1 billion judgment against Argentina tied to the nationalization of energy company YPF, delivering a major legal victory for the South American country and its government.
The U.S. Court of Appeals for the Second Circuit on Friday reversed a 2023 ruling that had ordered Argentina to compensate former shareholders for the 2012 seizure of a majority stake in YPF.
The earlier decision, issued by U.S. District Judge Loretta Preska, found Argentina liable for damages to investors, including Petersen Energía and Petersen Energía Inversora, following the government’s takeover of the company.
In its latest ruling, the appeals court struck down that judgment, marking a significant turn in a years-long legal battle over the nationalization.
Argentine President Javier Milei welcomed the decision, calling it a major win for the country.
“Today is a day of celebration for the good Argentines,” Milei said in a national address. “What seemed impossible, we made possible.”
Milei also announced that his administration has sent legislation to Argentina’s Congress aimed at limiting future expropriations and strengthening compensation mechanisms for affected parties.
The case has been closely watched by international investors and legal analysts, as it raised broader questions about sovereign immunity, investor protections, and the risks associated with government takeovers of private companies.
The ruling represents a significant financial and legal reprieve for Argentina, which had faced one of the largest judgments ever issued in a sovereign debt-related case.