Over the weekend, Javier Milei’s administration was abuzz with discussions on how to tackle the controversial ruling by New York judge Loretta Preska regarding YPF. The ruling demands Argentina to hand over 51% of YPF shares to the vulture fund Burford. One of the key strategies under consideration is seeking a declaratory action of certainty from the Supreme Court, a move that would bypass lower courts and provide clarity directly from the highest judicial authority.
“In light of the uncertainty created by Judge Preska’s ruling, the Supreme Court may need to affirm that the National Securities Depository cannot transfer YPF shares due to Law 26.741,”
explained a judicial source. This law mandates any changes in ownership must secure two-thirds approval from Congress, and currently, these shares are held in this depository.
The potential Supreme Court action would allow time for an appeal against Judge Preska’s decision without risking defiance and create room for negotiations. While details of this legal recourse remain confidential within government circles, it has been ruled out that an immediate injunction through a per saltum route will be pursued.
The Procurador General del Tesoro, Santiago Castro Videla, is expected to lead efforts towards appealing Preska’s latest verdict at the New York Appeals Court following Burford’s response rejecting Argentina’s plea to halt share transfers. High-ranking officials revealed ongoing consultations involving various stakeholders including legal advisors and political figures aimed at formulating a comprehensive response strategy.
“We are evaluating different options bearing in mind Horacio Rosatti’s insights,”
shared a senior government official with Clarín. The deliberations also involve exploring avenues aligned with Rosatti’s doctrine on State immunity concerning international execution mandates.
Amidst escalating tensions, there is growing consensus across political spectrums advocating for safeguarding Argentina’s sovereign rights in face of external legal challenges posed by Judge Preska’s ruling. Legislators have echoed concerns over potential threats to Argentina’s economic and political autonomy as they seek solutions grounded in national interests.
Furthermore, experts suggest augmenting legal defenses with robust political backing emphasizing constitutional sovereignty reaffirmation through congressional ratification – a pivotal step crucial for upholding state jurisdictional integrity amidst external litigations.
An additional layer of complexity stems from historical irregularities surrounding YPF’s expropriation back in 2012 eliciting renewed scrutiny into unresolved controversies linked to prior administrative decisions affecting stakeholder claims – factors likely influencing present-day legal battles associated with YPF ownership disputes.
Given Robert Giuffra Jr.’s role as counsel representing Argentina in the YPF case alongside his association with President Trump, speculations arise about potential diplomatic leverage during future court proceedings especially if appellate levels escalate within U.S. jurisdictions culminating potentially at their Supreme Court involvement indicating evolving transnational dimensions impacting Argentina’s legal defense strategy markedly.
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