U.S. Appeals Court Pauses Asset Tracing in Argentina's YPF Case

In 2012, the Argentine government, under then-President Cristina Fernández de Kirchner, nationalized YPF Energy, the country's largest energy company. This action has led to a protracted legal battle, culminating in a U.S. District Court ruling in 2023 that ordered Argentina to pay $16.1 billion to former shareholders, a figure that has since increased to over $18 billion due to accrued interest. The plaintiffs, including Petersen Energía and Petersen Energía Inversora, backed by litigation funder Burford Capital, argue that their rights were violated during the nationalization process. The case has been complicated by Argentina's assertion that the matter should be governed by Argentine law, not U.S. courts.

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On March 18, 2026, the U.S. Court of Appeals for the Second Circuit temporarily halted efforts by investors to trace Argentine assets in the U.S. This decision came after Argentina requested a suspension of the discovery process while it appeals the judgment. President Javier Milei hailed the ruling as a "historic milestone" for Argentina, emphasizing its significance in mitigating the economic and reputational costs associated with the ongoing litigation. The court's ruling pauses secondary proceedings, including attempts to locate Argentine assets such as gold reserves held by the central bank.

UsNews and World ReportBuenos Aires TimesYPF expropriation case: court suspends discovery until Argentina's appeal is settledArgentina opposition seeks prosecutor’s removal in $LIBRA case and warns of possible cover-up

The pause in asset tracing is seen as a strategic win for Argentina, allowing the government to focus on its economic recovery efforts without the immediate pressure of asset seizures. However, experts caution that this procedural victory does not guarantee a favorable outcome in the appeal against the $16.1 billion judgment. The appeals court's decision follows oral arguments held in October 2025, with a ruling on Argentina's appeal expected soon.

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Despite the positive reception from the Argentine government, critics argue that the ruling does not address the underlying issues of the nationalization and its impact on international investor confidence. The plaintiffs have accused the Argentine government of obstructing the discovery process, claiming that their requests for documentation have been met with delays. Argentina's Treasury Attorney General's Office has countered these claims, asserting compliance with court orders and dismissing the plaintiffs' demands as attempts to undermine the country's economic recovery.

YPF expropriation case: court suspends discovery until Argentina's appeal is settled

As the appeals court deliberates on Argentina's challenge to the judgment, the outcome could significantly influence the country's fiscal stability and its ability to engage with international capital markets. The ongoing legal battle continues to pose challenges for President Milei, who has committed to privatizing state-owned companies and rebuilding foreign reserves. The case, formally known as Petersen Energia Inversora v. Argentine Republic, remains a focal point in Argentina's complex relationship with international investors and its economic future.

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• “This decision represents a historic milestone in the defense of the Argentine Republic in litigation that, for more than 12 years, has imposed enormous economic, legal and reputational costs on the country,” — Javier Milei, President of Argentina

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• “a historic achievement in the Argentine Republic’s defence in litigation that, during more than 12 years, has meant an enormous economic, judicial and reputational cost for the country.” — Javier Milei, President of Argentina

Buenos Aires Times