Argentina achieves favorable ruling in YPF case: order to deliver 51% of shares suspended

The New York Court of Appeals granted a stay that allows the country to appeal without transferring its assets in the state oil company

Argentina obtained a favorable decision from the U.S. Court of Appeals for the Second Circuit in the YPF case, which suspends the court order that forced the country to hand over 51% of the shares of the state oil company as part of the payment for the nationalization carried out in 2012.

The U.S. court "accepted Argentina's request, so the June 30, 2025 order is suspended" while the appeal filed by the Argentine government is resolved. This decision represents a significant relief for national authorities, who had warned about the practical impossibility of complying with an adverse ruling.

Context of the dispute

The case originates in the nationalization of YPF carried out on April 16, 2012 during the government of Cristina Fernández de Kirchner, when the Argentine State expropriated 51% of the shares that belonged to the Spanish Repsol. In September 2023, Judge Loretta Preska ordered the government to pay US$ 16.1 billion for the nationalization of YPF: US$ 14.4 billion corresponding to the Petersen Group and US$ 1.7 billion to Eton Park.

Given Argentina's inability to meet the monetary payment, the magistrate had ordered last June that the country transfer 51% of its shares in YPF to a global custody account at the Bank of New York Mellon as a way to guarantee compliance with the ruling.

Position of the Argentine government

The chief of staff, Guillermo Francos, had warned days ago that "An adverse ruling is unfulfillable," marking the government's firm position regarding the impossibility of complying with an order that would imply the loss of control of the country's main energy company.

The Ministry of Economy immediately celebrated the decision of the appeals court, which also accepted that the United States government participate as "amicus curiae" supporting the Argentine position in the judicial process.

Implications of the ruling

The suspension granted by the Court of Appeals allows "The government's shares in the oil company to remain in the Caja de Valores while the Court resolves the appeal," according to analyst Sebastián Maril of Latam Advisors.

This decision prevents, for the time being, Argentina from losing control of YPF, a strategic company for the country's energy sovereignty and key in the development of unconventional resources in Vaca Muerta.

The judicial process will continue in the appeal instances, where Argentina will seek to reverse the millionaire sentence imposed in the first instance. Meanwhile, the country maintains full control of the state oil company, whose shares will remain in Argentine custody during the appeal process.

The decision marks an important respite for the Argentine government in one of the most complex international disputes facing the country, with direct implications for one of its most valuable energy assets.

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⚠️ Contaminated fentanyl in Argentina: 76 fatalities

The health crisis due to the use of contaminated fentanyl continues to grow in Argentina. Federal Judge Ernesto Kreplak confirmed that 76 people have died after receiving doses of this powerful painkiller adulterated with dangerous bacteria.

🧪 What happened?

• Two batches of the drug, produced by HLB Pharma and Ramallo S.A., were contaminated with Klebsiella pneumoniae and Ralstonia pickettii, highly resistant bacteria.
• An estimated 154,000 vials were distributed, of which 42,000 were applied to patients before the health alert was issued.
• Another 64,000 doses were recovered, and 48,000 are isolated as judicial evidence.

🏥 Where did it happen?

• The case began at the Italian Hospital in La Plata, but spread to more than 200 hospitals throughout the country.
• The reporting system is voluntary, which makes it difficult to identify all affected cases.

⚖️ Ongoing research

• There are 24 people under suspicion, with seized assets, but no one arrested so far.
• Searches were carried out  in the laboratories involved.
• The judge warned that the number of victims could continue to rise as clinical data is cross-referenced and more cases are identified.

🗣️ Testimonies

Relatives of victims, such as Leonel (32 years old), recounted how their loved ones died of sepsis and organ failure after receiving the contaminated drug. Many found out months later that they had been given ampoules of the adulterated batch.

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Speech by the president of the Rural: Zero Withholdings and Plan to Double Production

Nicolás Pino reiterated the historical demands of the Argentine countryside with a conciliatory tone towards the Milei government, although he clarified that the sector "is not a partisan ally, but exclusively of Argentina."

The Central Claim: Elimination of Withholdings

In his speech to national authorities, Pino described the withholdings as "a scourge for the common good" that slows down the development of the country. Since 2002, the countryside has contributed more than 200,000 million dollars to the State through this tax, with rates that reach 33% of the international price.

"They are discriminatory, confiscatory and discourage production. Not even the officials of the current government deny in private that they are disastrous," the ruralist leader emphasized.

Eight Conditions for Doubling Production

Pino presented a comprehensive plan that, according to his projections, would make it possible to achieve:

• 200 million tonnes of cereals and oilseeds
• 8 million tons of meat
• 14,000 million liters of milk
• 2 million hectares of forest
• Total value: $60 billion (vs. $40 billion today)

The proposed conditions:

1. Reducing the tax burden - Eliminating withholding tax as a priority
2. Judicial Reform - Eliminate the "Trial Industry" and Reduce Legal Costs
3. Accessible Credit - Long-term financing without financial speculation
4. Rural Security - Special Prosecutor's Offices against cattle rustling and rural crimes
5. Essential Services - Improved Access to Health and Education in Rural Areas
6. Critical Infrastructure - Roads, Railways and Waterway Maintenance
7. Territorial occupation - Demographic redistribution to take advantage of productive land
8. Development of Rural SMEs - As an Engine of Growth and Poverty Reduction

Three Key Institutional Reforms

INTA: It must maintain its role in research and biotechnology, incorporating artificial intelligence and robotics, with dynamic professional management.

SENASA: Requires urgent reorganization to eliminate bureaucracy and ineptitude, providing it with international technical excellence.

Health status: Aspiration to achieve the status of a country free of foot-and-mouth disease without vaccination, following the Patagonian model.

Political and Economic Message

Pino supported the policies of the current government, highlighting fiscal consolidation, the clean-up of the Central Bank and the elimination of the exchange clamp. However, he made critical references to the previous administration, alluding to "the conviction of a former president" and "disastrous cases such as the expropriation of YPF."

The rural leader emphasized that the countryside is not looking for privileges but for equitable conditions: "If we produce more and create more employment, poverty goes down. Enough of superficial policies and cheap lies."

The speech was given at the opening of the 137th Rural Exhibition, with a large official presence including President Milei and most of his cabinet.

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Milei Announces Permanent Reduction of Withholdings in La Rural

The president confirmed significant declines in the main agricultural products, with reductions of 20% for grains and 26% for meat. Villarruel's absence marked a new episode of internal tension.

The new rates announced

Milei confirmed "permanent" reductions in withholdings, calling them "the great scourge that should never have existed":

Projected Economic Impact

The president stressed that the measures represent:

• 20% reduction in withholdings for grain chains
• 26% reduction for livestock and meat chains
• Comprehensive benefit for the interior of the country

"From veterinarians to silo builders, everyone benefits when the profitability of the private sector stays in the private sector instead of being extirpated by the damn state," Milei emphasized.

Fiscal Sustainability as a Condition

The president directly linked the reductions to the macroeconomic balance achieved:

"This is only thanks to the fiscal surplus we have achieved, which we take care of like water in the desert in the face of the systematic onslaught of the political caste."

The Casa Rosada later issued an official statement describing the measure as the beginning of "a new era marked by the growth and unleashing of the full potential of the countryside."

Political Tension: Villarruel's Absence

Vice President Victoria Villarruel did not attend the event after confirming her presence. Sources close to him denounced that Casa Rosada Protocol denied him access for his staff and did not inform him of his location at the event.

Milei took the opportunity to indirectly criticize her by referring to the bills that the Senate sent to the Executive for veto: "They say that an expenditure of 17,000 million dollars per year can be financed with a cut of 30 million in the SIDE," alluding to Villarruel's statements about the intelligence budget.

Political Context of the Announcement

The measure came at a time of high expectations from the agricultural sector, which had been demanding concrete gestures after months of waiting. The event was also attended by Jorge Macri, in the midst of negotiations on a possible electoral alliance between PRO and La Libertad Avanza for October.

"The countryside is a strategic sector for Argentina and an engine of growth," said the head of the Buenos Aires government, sitting in the front row next to his wife.

Commitment to the future

Milei reaffirmed his commitment to the total elimination of withholdings: "These reductions are permanent and there will be no turning back while I am in government. Eliminating withholdings is an obsession for our management."

The announcement is part of the government's strategy to position the countryside as the "backbone of the economy" and reverse decades of policies that the ruling party describes as "systematic theft of the fruit of other people's labor."

The measure came into force immediately and adds to the deregulation and trade opening policies implemented since December 2023.

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