A US appeals court overturned a $16bn judgment against Argentina, clearing the way for the country to avoid a massive payout to minority shareholders of YPF. The judges ruled the shareholders' claims were not legally valid under Argentine law. This decision is a major victory for President Javier Milei, who has long argued the $16bn liability was a costly burden from previous interventionist policies.

Burford Capital, which funded the litigation and stood to gain a significant share of the award, saw its stock plummet over 50% on the news. The ruling also removes a major cloud over YPF's future, with Argentine shares rising more than 6%. The case stemmed from Argentina's 2012 expropriation of YPF from Spain's Repsol, a move that sparked this lengthy legal battle. Burford Capital purchased the claims for just €15mn but now faces years of potential appeals. Argentina's energy outlook has shifted, with recent shale oil and gas booms potentially offsetting past liabilities.

The court's decision entirely vindicates Argentina's legal strategy in the case, according to its lawyers.