Argentina seeks to overturn $16.1 billion YPF ruling in US appeals court

Argentina's Legal Battle: A U.S. appeals court will review whether Argentina must pay $16.1 billion to investors after seizing control of YPF, a state-owned oil company, over a decade ago. The case stems from a 2012 expropriation of shares from Spain's Repsol without a tender offer to minority shareholders.

Economic Implications: The potential judgment poses a significant threat to Argentina's economy, which is already struggling with debt and high inflation. President Javier Milei's administration has implemented austerity measures, and a large payout could exacerbate economic challenges.

Investor Claims and Court Rulings: U.S. District Judge Loretta Preska previously ruled in favor of minority shareholders Petersen and Eton Park, ordering Argentina to pay substantial damages and prejudgment interest. Argentina is appealing this decision, arguing that the case should not be in U.S. courts and that the damages are inflated.

U.S. Government's Position: The U.S. government has not taken a formal stance on the appeal but has expressed concerns that enforcing the judgment could affect foreign policy and lead to similar legal challenges against the U.S. in other countries.