President Javier Milei utilized a nationally televised broadcast on Friday night to celebrate a favorable court ruling for Argentina concerning the 2012 nationalization of the state energy firm YPF, while simultaneously characterizing the leaders of the opposition Peronist movement as irresponsible and reckless. In an unexpected ‘Cadena Nacional’ address aired nationwide, Milei vehemently condemned former president Cristina Fernández de Kirchner and Buenos Aires Province Governor Axel Kicillof – the principal political actors responsible for the expropriation of YPF 14 years prior – while lauding his administration for achieving a significant legal triumph.
The initial intent to commemorate the ruling of a US appeals court evolved into a political discourse laden with criticisms directed at Peronism and Kirchnerism. Milei attributed the responsibility for initiating what he characterized as Argentina’s most expensive legal confrontation on the international stage to these political movements. The situation arises from Argentina’s 2012 choice to nationalize YPF, which was at that time under the control of Spain’s Repsol. Minority shareholders subsequently initiated legal action in the United States, contending that Argentina did not execute an appropriate tender offer for the outstanding shares as mandated by YPF’s corporate statutes. In 2023, a New York court mandated that Argentina pay approximately US$16 billion in damages, marking one of the most substantial judgments ever rendered against the nation. The recent appeals court ruling has improved Argentina’s standing in the case, which Milei characterized as a significant alleviation for the nation’s financial situation.
Milei adopted a combative stance from the beginning. He characterized the ruling as a “event of historic and unprecedented importance” and noted that Argentina had successfully circumvented a potential US$18-billion payout. That figure, he asserted, was tantamount to 70 million minimum pension payments. The leader of La Libertad Avanza aimed to leverage the situation for political gain, consistently emphasizing that the blame for Argentina’s enduring economic challenges ought to be attributed to past Peronist governments. Milei attributed the favorable ruling to the “legal, political and diplomatic expertise” of his government’s team, while emphasizing that Argentina had been brought to the brink of catastrophe by previous decisions. He characterized the expropriation of the oil company as a “suicidal adventure” and charged Kirchnerism with almost jeopardizing the country’s YPF, resulting in a “bankrupt state.” The President asserted “Expropriation is wrong because stealing is wrong,” marking one of the most notable statements of the address.
Milei emphasized during the address that although populism might elicit immediate applause, it inflicts significant harm in the medium and long term. He referred to “populist arrogance,” “cheap, second-rate nationalism,” and “false sovereignists” — a series of phrases intended to challenge the Kirchnerite narrative that the nationalisation of YPF constituted an act of economic sovereignty. Milei contended that the expropriation resulted in a multi-billion-dollar lawsuit and deterred investment for over a decade. He stated that the cost should not be assessed solely in terms of the court case, but also in relation to diminished economic growth, reduced employment, and increased poverty rates. “They gambled with our future; we did not gamble, we simply won,” Milei stated. The leader of La Libertad Avanza has indicated that his administration has submitted a bill to Congress aimed at amending the laws related to expropriations. This initiative seeks to enhance safeguards for private property and avert potential legal conflicts in the future.