Argentina lodged an appeal Thursday after a US court ordered the nation to sell its majority stake in oil firm YPF, at the heart of a long-running nationalisation dispute.
Last week, a federal judge in New York ordered Argentina to sell its 51 percent stake in YPF towards settling a debt of US$16.1 billion to two former minority shareholders.
Argentina in 2012 seized 51 percent of the company from Spanish oil giant Repsol, which received about US$5 billion in compensation.
But minority shareholders Petersen Energia and Eton Park Capital – which jointly held about 25 percent of the company – went to court claiming they were not properly compensated.
A district court ruled in favour of the plaintiffs and in September 2023 ordered Argentina to pay the two firms, which has not happened.
Last week, the judge said Argentina must sell its stake in YPF to offset the debt.
The Argentine Treasury's legal division said on Thursday the country has initiated appeal proceedings.
"Argentina just began the formal appeal process against the order issued by Judge [Loretta] Preska last week requiring the surrender of YPF shares," said Beatriz de Morra, communications officer for the Attorney General's Office, on Thursday.
A decision is also pending on Argentina's request for the payment to be suspended until its appeal is heard.
On July 1, Argentina asked the judge to suspend enforcement of the ruling until the appeal is resolved, a decision that is still under consideration.
In its request, Argentina noted that the case involves "extraordinary circumstances" that must be taken into account and that it is not "a simple commercial dispute between companies."
The ruling is seen as a setback for libertarian President Javier Milei, whose administration is seeking to bolster foreign currency reserves and rein in soaring inflation while navigating a heavy debt burden.
If it loses its appeal, Argentina has vowed to seek relief from higher courts.
– TIMES/AFP
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