YPF expropriation case: Argentina denounces harassment as hedge fund asks for sanctions

Lawyers representing Argentina in the YPF expropriation case in New York have said a request by UK-based hedge fund Burford Capital — the plaintiffs — to hold the country in contempt, constitutes “procedural harassment.” Burford’s legal team made the formal request to Judge Loretta Preska on Thursday. The claim is linked to the case’s discovery process, where an order dated July 29, 2025, requires Argentina to hand over emails and messages from current and former government officials.  The plaintiffs argue that some Argentine officials did not hand in all the requested documentation and that this justifies sanctions. In response, the Office of the Attorney General of the Argentine Treasury issued a statement saying the motion represents “the most recent attempt by litigation financier Burford Capital to harass the Republic through intrusive and disproportionate discovery requests.” and insisted it’s “‘a tool to put sand in the gears’ of Argentina’s economic recovery, as its CEO pointed out.” It added that Argentina handed over “more than 113,000 pages of documents” and “the testimony of various Argentine government officials.”   It also claimed these “new attacks” have to do with “recent advances made by Argentina in the judicial sphere, which have weakened Burford’s procedural position.” The comments, however, do not constitute an official response. Argentina will have to formally address the complaint on February 19, while the plaintiffs’ presentation is scheduled for  March 5.  Judge Preska will decide whether to declare Argentina in contempt at the hearings scheduled for March 23 and 24. The YPF case For more than a decade, Argentina has been involved in a legal battle over the expropriation of its state oil company, YPF. The case dates back to 2012, when Argentina’s Congress expropriated 51% of YPF shares from Spanish multinational Repsol, which was the majority shareholder at the time, giving the state majority control of the company. In 2015, UK-based hedge fund Burford Capital sued Argentina in the District Court for the Southern District of New York after buying the right to litigate in the name of Petersen Energia Inversora and Petersen Energía, two companies belonging to the local Ezkenazi family, which owned part of the remaining shares.  In 2023, Judge Preska ruled that the country had breached its contract and ordered it to pay US$16.1 billion, a judgement Argentina’s lawyers appealed before the U.S. Court of Appeals.