Judge Preska has acknowledged Argentina’s delays but granted extensions, postponing embargo execution pending appellate decisions. The U.S. Second Circuit Court of Appeals is scheduled to hear Argentina’s challenge to the initial $16 billion plus interest ruling against it based on the improper expropriation of YPF’s controlling stake. The appeals court’s decision, expected in 2026, will heavily influence the litigation’s trajectory. In the interim, Preska temporarily suspended enforcement measures, including a temporary halt on attempts to seize YPF shares held by Argentina, registered in Buenos Aires under domestic law prohibiting their transfer without congressional approval.
Burford alleges Argentina and YPF operate as alter egos, seeking to hold the company liable and thus facilitate recovery through asset seizures. The Argentine Treasury disputes this, insisting YPF is legally distinct from the government. Burford’s pursuit of off-channel communications aims to substantiate this claim. The litigation puts additional pressure on Argentina during a period of economic volatility, potentially complicating investment flows and raising sovereign credit risk. With diplomatic and judicial battles ongoing, Argentina’s position remains defensive, underscoring the prolonged uncertainty surrounding one of Latin America’s largest energy assets.
This article was curated and published as part of our South American energy market coverage.
