Federal Court Temporarily Blocks Asset Search in $16B Argentina Energy Dispute

A federal appeals court has temporarily halted investor efforts to locate Argentine government assets in the U.S. as part of a massive $16 billion lawsuit. The case stems from Argentina's 2012 seizure of its largest energy company, YPF, which trades on the New York Stock Exchange.

A federal appeals court has temporarily blocked investors from searching for Argentine government assets within the United States as they attempt to collect on a massive $16 billion court judgment related to the South American nation’s takeover of its primary energy corporation in 2012.

The asset discovery process will remain suspended while appeals continue in the lengthy legal battle, where U.S. District Judge Loretta Preska previously ruled that Argentina must pay compensation to investors following the government seizure of majority control in YPF Energy.

According to court documents reviewed by The Associated Press, the Second Circuit U.S. Court of Appeals in New York blocked former shareholders Petersen Energía and Petersen Energía Inversora — supported by litigation financier Burford Capital — from gathering information about Argentine assets located in America, including central bank reserves like gold holdings.

On Wednesday, Argentine President Javier Milei called the court’s decision “historic” and “unprecedented” in favor of his country regarding the YPF litigation.

“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,” the president said in a statement. According to the government’s announcement, Argentine officials requested the discovery suspension on March 6.

However, a legal expert warned that Argentina’s procedural victory doesn’t guarantee the appeals court will reverse the $16.1 billion judgment — an amount that has grown beyond $18 billion when including interest.

Sebastián Maril, who analyzes Latin American litigation for Latam Advisors, explained to The Associated Press that Wednesday’s ruling merely suspends secondary legal proceedings like asset tracing until the court decides Argentina’s main appeal. Oral arguments took place in October, with a final decision still pending.

Last June, Judge Preska directed Argentina to hand over its 51% majority ownership in YPF as partial payment to the plaintiffs. The appeals court suspended that directive two months later.

President Milei, who faces challenges rebuilding Argentina’s diminished foreign currency reserves and has promised to sell off government-controlled enterprises, has attributed the legal case to his political rivals. In 2012, former President Cristina Fernández de Kirchner, who led the country from 2007 to 2015, supervised the state acquisition of Argentina’s top energy firm, further damaging the nation’s international financial credibility.

The plaintiffs were able to file their lawsuit against YPF in American courts because the company maintains a listing on the New York Stock Exchange.

Following the government takeover, YPF has intensified development of Argentina’s extensive shale gas deposits in the Vaca Muerta region of Patagonia. Oil production from Vaca Muerta has grown consistently, hitting nearly 600,000 barrels daily in January, representing about 68% of the country’s total output. YPF announced a $5 million profit in 2025, marking its best financial performance in a decade.