Background on the YPF Expropriation Case
The case revolves around the expropriation of YPF, Argentina’s largest oil company, by the government in 2012. The expropriation led to a legal dispute between Argentina and several international oil companies, including Repsol, a Spanish firm that previously owned 60% of YPF. The companies sought compensation through international arbitration, resulting in an award against Argentina.
Key Players Involved
- Argentina: The South American country expropriated YPF in 2012 and is currently defending its actions in international courts.
- Repsol: The Spanish oil company that previously owned 60% of YPF and is seeking compensation for the expropriation.
- United States Department of Justice: The US government agency that has provided support to Argentina in the YPF case.
US Department of Justice’s Support for Argentina
The US Department of Justice has formally backed Argentina’s claim in the YPF expropriation case, presenting an “Amicus Curiae” (friend of the court) brief to the US Court of Appeals for the Second Circuit in New York.
Timeline of US Support
- November 2014: The US Department of Justice submitted a declaration in support of Argentina’s position against the transfer of YPF shares, when Judge Loretta Preska initially ordered the transfer.
- 2019: During the presidencies of Mauricio Macri (Argentina) and Donald Trump (US), the US Supreme Court requested the US government’s opinion on Argentina’s jurisdictional immunity claim.
- June 30, 2021: Judge Loretta Preska ordered the transfer of YPF shares to Repsol and other claimants.
- July 15, 2021: The US Court of Appeals for the Second Circuit granted a temporary administrative stay on Argentina’s payment of 51% of YPF shares to Buford Capital and Eton Park.
Impact of US Support
The US Department of Justice’s support for Argentina in this case is significant, as it adds to the backing from four other countries (Ecuador, Brazil, Uruguay, and Chile). This collective support strengthens Argentina’s position as it anticipates potentially appealing to the US Supreme Court if necessary.
Key Questions and Answers
- What is the YPF expropriation case about? The case stems from Argentina’s 2012 expropriation of YPF, its largest oil company, from Repsol, a Spanish firm. Repsol and other claimants are seeking compensation through international arbitration.
- What is an Amicus Curiae brief? An Amicus Curiae, or “friend of the court” brief, is a legal document in which a non-party offers information on points of law or fact to assist the court in reaching a decision.
- Why is US support important for Argentina? The backing from the US Department of Justice, along with other countries, strengthens Argentina’s position in international courts and increases the likelihood of a favorable outcome in its appeal.
Next Steps for Argentina
Argentina will continue to defend its position in the courts, potentially appealing to the US Supreme Court if necessary. The temporary administrative stay granted by the US Court of Appeals for the Second Circuit allows Argentina to postpone payments while the appeal process continues.
