Argentina’s legal fight in U.S. court over the 2012 nationalization of the energy company YPF suffered a major setback for investors in the latest appeal, according to a New York ruling reported by The Associated Press. On Friday, a U.S. appeals court struck down a $16.1 billion judgment against Argentina, reversing a lower-court decision that had ordered compensation for former shareholders after the seizure of a majority stake in YPF Energy.
The Associated Press reported that the decision was issued by the U.S. Court of Appeals for the Second Circuit, which overturned a 2023 judgment associated with U.S. District Judge Loretta Preska. In that earlier ruling, Preska had ordered Argentina to compensate Petersen Energía and Petersen Energía Inversora for the 2012 seizure of a controlling share.
Milei, who has pushed policies including privatizing state-owned companies, publicly celebrated the appeals court’s decision. In a national broadcast Friday, the Associated Press reported that Milei said, “Today is a day of celebration for the good Argentines,” adding, “What seemed impossible, we made possible.”
The president also told viewers, according to the AP report, that his government sent a bill to Congress aimed at “limit[ing] expropriations and increase[ing] compensation” for those affected. The move was framed by Milei as part of changing how Argentina handles the taking of assets, after decades in which multiple political administrations have faced legal and financial consequences tied to state actions.
In his remarks around the ruling, Milei also criticized the prior administration of former left-wing leader Cristina Fernández de Kirchner, whose government oversaw the YPF nationalization. The Associated Press reported that Milei wrote Friday morning that he would address the issue “the Milei way,” and said his government has “cleaned up the mess” left by the former leader.
The AP report placed the case in the longer history of Argentina’s nationalization decision, saying the 2012 takeover of the country’s largest energy company added to concerns about Argentina’s international reputation for meeting financial obligations. It also described how plaintiffs won the ability to sue in the United States, in part because YPF is listed on the New York Stock Exchange.
The timeline in the AP story shows that the case continued to evolve even after the lower-court ruling: in June 2025, Preska ordered Argentina to transfer its 51% controlling stake in YPF as partial compensation, and two months later the appeals court placed that transfer order on hold. Friday’s ruling removed the broader $16.1 billion compensation judgment that flowed from the earlier decision.
Since the nationalization, the AP report said, YPF has accelerated development of Argentina’s shale gas reserves in the Vaca Muerta field in Patagonia. It reported that crude production there has increased, reaching nearly 600,000 barrels per day in January, about 68% of national output, and said YPF reported a profit of $5 billion in 2025—its highest level in the past 10 years.
As Argentina’s political leadership continues to weigh energy policy and the state’s role in major industries, the appeals court’s action means the dispute over the costs of the 2012 nationalization remains contested in U.S. legal venues after investors’ initial compensation award was reversed.