"Legally unenforceable": the repercussions after the government requested the suspension of the YPF ruling

After learning that the government requested the suspension of the ruling issued last Monday by a New York court ordering Argentina to hand over 51% of YPF's shares to the beneficiaries of the measure, in the context of the trials over the nationalization of the oil company, the Casa Rosada (Presidential Palace) emphasized that the court's decision is "legally unenforceable."

The first to speak out was Manuel Adorni , who confirmed from his X account that "the Government requested the suspension of Judge Prezka's ruling " and that they are currently working on the appeal.

The presidential spokesman also defined the ruling as "legally inapplicable" and explained that, on the one hand, it "contradicts Law 26.741, which requires congressional authorization by a supermajority." On the other hand, the ruling "ignores sovereign immunity."

"The shares are not in the possession of the State, nor are they legally transferable," Adorni added in his defense.

The government has requested a stay of Judge Prezka's ruling and is working on an appeal.

The ruling ordering the surrender of YPF shares is legally unenforceable: it contradicts Law 26.741, which requires congressional authorization by a supermajority and ignores immunity…

— Manuel Adorni (@madorni) July 2, 2025

The ruling party remained tight-lipped on the issue throughout the day. Aside from Adorni, the only representative who addressed the lawsuit was Representative José Luis Espert , who tweeted a response to a post by Andrés "Cuervo" Larroque around 11 p.m.

The Minister of Development of the province of Buenos Aires had shared on his X account a photo of an oil company truck with the phrase YPF is not for sale. That same photo was also shared by several accounts affiliated with the Justicialist Party after Tuesday's conference , in which the governor of Buenos Aires, Axel Kicillof, defended the nationalization of the company when he was Cristina Kirchner's deputy minister of economy.

"You can't be so deceitful, perverse, and cynical," Espert wrote Tuesday, retweeting Larroque, adding: "You, the big (false) nac & pop, have already handed it over to the vultures. Now we'll see how we can get it back from you and make it ours again."

You can't be so deceitful, perverse, and cynical. You, the great (false) nac & pop, have already handed it over to the vultures. Now we'll see how we can get it back from you and make it ours again. https://t.co/U1dg57BaQV

— José Luis Espert (@jlespert) July 2, 2025

The government's filing with the Southern District Court of New York was announced Tuesday afternoon. In the filing, Argentina asked U.S. Judge Loretta Preska to suspend the ruling requiring the country to hand over YPF shares to the plaintiffs until the appeal, which will be filed in the coming days, is resolved.

In that request, filed by the firm Sullivan & Cromwell LLP—hired by the Attorney General's Office—it was argued that the decision should be put on hold because "the Argentine government has demonstrated that its arguments could be successful"; in addition, it "would be seriously harmed if it were not granted the right to appeal"; that "other parties could also be harmed by the procedure adopted"; and that "the public interest prevails."

In addition, the Casa Rosada notified the judge of the Southern District of New York that it will appeal, as Javier Milei announced on Monday on his X account. He also warned her that if the suspension is not granted, he will go to a higher court to obtain it.