U.S. Federal Judge Rules Argentina Owes $16 Billion for Expropriation of YPF

Written by Joseph Cain | September 17, 2023

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On September 9^th, a federal judge in New York ordered the nation of Argentina to pay $16 billion to minority shareholders of YPF, over the Argentine government’s 2012 seizure of a majority stake in the energy company. This decision comes at a time when Argentina is dealing with inflation rates well above 100% and a shortage of dollars. Meanwhile, Presidential elections are set to take place next month with the state of the economy front and center in voter’s minds. Following this concern, the current Peronist administration led by President Alberto Fernandez and Vice President Cristina Kirchner, who was President when YPF was expropriated, could be replaced by political outsider Javier Milei, a fierce libertarian with an economist background.  

Javier Milei is currently projected to win a plurality in the Presidential election set to take place on October 22^nd. He is polling at 31.1% and has pledged to close the Argentine Central Bank, slash bureaucracy, and dollarize the economy. However, there will be a runoff in November if any candidate fails to win 50% of the votes. His top challengers are current minister of the economy Sergio Massa, who has been endorsed by the populist Peronist leaders, and is polling at 28.1% and Patricia Bullrich, a former defense minister, who is polling at 21.2%.