U.S. Backs Argentina in YPF Case, Urging Halt to “Intrusive” Discovery
Saturday, March 14, 2026 – 16:03 UTC
The U.S. Government has once again intervened in support of Argentina in its legal battle over the 2012 nationalization of YPF, the state oil company. A new memorandum filed by the U.S. Justice Department before the Second Circuit Court of Appeals in New York backs Argentina’s request to suspend post-judgment discovery in the case, citing concerns over intrusive demands and potential diplomatic repercussions.
Concerns Over Discovery Scope
Argentina’s Treasury Solicitor’s Office confirmed that the Justice Department’s filing supports its emergency motion, submitted on March 6, to pause document production, a sanctions request, and an evidentiary hearing scheduled for April. The core of the dispute centers on the scope of information sought by plaintiffs, which Argentina argues is excessively intrusive.
Specifically, Argentina has challenged requests for communications involving senior officials and for information regarding its sovereign assets, including central bank gold reserves. The government contends these demands exceed reasonable enforcement limits against a foreign state. Argentina’s motion seeks to freeze this phase of the legal process while the main appeal and related enforcement disputes remain unresolved.
U.S. Cites International Comity and Reciprocity
According to the Argentine government, the Justice Department argued that the plaintiffs’ demands raise concerns regarding international comity, reciprocity, and foreign policy. Washington maintains that when litigation involves a sovereign state, courts should consider not only the procedural relevance of discovery requests but also their potential diplomatic consequences and how the United States might be treated in similar litigation abroad.
Continued U.S. Support
This is not the first instance of the U.S. Intervening on Argentina’s behalf in this case. In late February, the Justice Department filed a brief opposing contempt requests and questioning the breadth of discovery, signaling a consistent position beyond purely commercial considerations. Bloomberg Law previously reported that the U.S. Warned that aggressive enforcement measures against Argentina could affect its own sovereign interests in future litigation.
Background of the YPF Case
The dispute stems from a US$16.1 billion judgment issued in 2023 by Judge Loretta Preska related to the 2012 nationalization of YPF [Reuters]. Argentina has appealed both this ruling and subsequent orders concerning the potential transfer of its controlling stake in the oil company. The Second Circuit Court is currently reviewing both the main judgment and related enforcement orders [Reuters], making this one of the most significant sovereign litigation cases facing the administration of Javier Milei.
Mercopress and Energy News also reported on the U.S. Justice Department’s support for Argentina’s request.