US Appeals Court Overturns $16 Billion Judgment Against Argentina

Ruling reverses order for Argentina to compensate former YPF shareholders after 2012 nationalization

Mar. 27, 2026 at 11:19pm

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A New York appeals court has overturned a $16.1 billion judgment against Argentina, reversing a lower court's order for the country to compensate former shareholders of the nationalized energy company YPF. The decision was celebrated by Argentine President Javier Milei, who has pledged to privatize state-owned companies and blamed political opponents for the legal fallout from the 2012 YPF seizure.

Why it matters

The overturned judgment was a major financial liability for Argentina, which has struggled to rebuild its depleted foreign reserves. The nationalization of YPF in 2012 further damaged Argentina's international standing by reinforcing its history of abandoning global financial obligations. The appeals court ruling is a significant victory for the Milei administration as it seeks to restructure the country's economy.

The details

In 2023, a U.S. District Judge ordered Argentina to compensate investors Petersen Energía and Petersen Energía Inversora for the seizure of a majority stake in YPF in 2012. However, the U.S. Court of Appeals for the Second Circuit has now overturned that $16.1 billion judgment. President Milei celebrated the ruling as the 'greatest judicial victory in national history,' and criticized former left-wing leader Cristina Fernández de Kirchner, whose administration oversaw the YPF nationalization.

  • In 2012, the Argentine government nationalized a majority stake in YPF, the country's largest energy company.
  • In 2023, a U.S. District Judge ordered Argentina to pay over $16 billion in compensation to former YPF shareholders.
  • On March 27, 2026, the U.S. Court of Appeals for the Second Circuit overturned the $16.1 billion judgment against Argentina.

The players

Javier Milei

The current president of Argentina, who has pledged to privatize state-owned companies and has frequently blamed his political opponents for the legal fallout from the YPF nationalization.

Cristina Fernández de Kirchner

The former left-wing president of Argentina whose administration oversaw the 2012 nationalization of YPF, which Milei has criticized as a 'mess' that his government is now cleaning up.

Petersen Energía

An investment firm that was one of the former shareholders of YPF seeking compensation from Argentina after the 2012 nationalization.

Petersen Energía Inversora

Another investment firm that was a former shareholder of YPF and joined Petersen Energía in seeking compensation from Argentina.

YPF

Argentina's largest energy company that was nationalized by the government in 2012, leading to a long-running legal battle with former shareholders.

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What they’re saying

“It's historic, unthinkable, the greatest judicial victory in national history.”

— Javier Milei, President of Argentina

“Because I'm Milei, I'll say it the Milei way. My government has cleaned up the mess left by the former leader.”

— Javier Milei, President of Argentina

What’s next

The Milei administration is expected to continue its efforts to restructure Argentina's economy, including through the privatization of state-owned companies like YPF.

The takeaway

The overturning of the $16 billion judgment against Argentina is a significant victory for the Milei government as it seeks to rebuild the country's depleted foreign reserves and reshape its economic policies. However, the long-running legal battle over the YPF nationalization highlights the ongoing challenges Argentina faces in repairing its international standing and financial obligations.