Argentina’s $16 Billion YPF case takes new turn as governors push US probe
A high-stakes legal battle in the United States threatens to drain Argentina’s reserves and bind future generations to billions in debt. At the centre is the YPF case, a dispute over the 2012 expropriation of the country’s largest oil company.
Now, a group of provincial governors is preparing to ask US authorities to investigate the original entry of the Eskenazi family into YPF — a move they hope could halt the ongoing civil case.
The governors of Mendoza, Chubut and Santa Cruz, joined by their counterparts in Río Negro and Neuquén, argue that criminal proceedings in US courts could suspend enforcement of the civil judgment. They maintain that the 2007 deal, in which Grupo Petersen acquired a 15% stake in YPF with an option for 10% more, was irregular and set the stage for today’s multi-billion-dollar lawsuit.
Argentina is currently appealing a ruling by Judge Loretta Preska of the US District Court for the Southern District of New York, which ordered the state to transfer its YPF shares to a New York bank as part of a $16 billion judgment in favour of litigation fund Burford Capital. The government insists such a transfer would violate sovereign immunity and national law, which requires congressional approval for any disposal of YPF shares.
The provincial leaders now want the US Department of Justice to examine whether crimes were committed in the initial YPF share purchase. If accepted, such a case could suspend the civil ruling and force leading figures from Argentina’s political and corporate elite to testify before US investigators. Observers note that the DOJ, with its FBI arm, has a track record of pursuing major financial crimes such as the FIFA corruption scandal.
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The push comes amid closer ties between Presidents Donald Trump and Javier Milei, a factor some believe could open political space for US authorities to take on the case. “Time is running out,” one governor warned, with Judge Preska expected to rule soon on enforcement measures. For the provinces, whose shares in YPF were diluted during privatisation, the stakes are not only financial but also political: securing a role in defending Argentina’s interests in one of the most consequential legal battles in its history.
This story is written and edited by the Global South World team, you can contact us here.
