US backs Argentina and requests the dismissal of the sanctions promoted by Burford in the trial over YPF

In a move with major political and legal impact, the government of the United States formalized its support for the Argentine Republic in the context of the trial over YPF, expressly opposing a declaration of the country being in contempt of court and the imposition of sanctions requested by the plaintiffs. The filing was submitted by the Department of Justice before Judge Loretta Preska's court, in the city of New York, in the context of the litigation over the expropriation of YPF. The brief, dated February 26, 2026, and 29 pages long, represents strong institutional support for the Argentine position.

In the document, the U.S. government clearly warns about the systemic implications of the case: "Litigation in United States courts against foreign states can have important foreign policy implications for the United States and affect the reciprocal treatment that the U.S. government receives before the courts of other nations." The statement is significant. It introduces the principle of sovereign reciprocity and places the conflict in a broader geopolitical dimension, going beyond the strictly commercial or procedural level.

The Department of Justice also referred specifically to the discovery requests that gave rise to the contempt motion brought by the Burford fund and other plaintiffs.

In that regard, the brief highlighted: "the efforts made by the country to comply with the discovery requests aimed at obtaining communications from senior Argentine officials linked to state entities, requests that, in themselves, are incompatible with the considerations of comity and reciprocity that arise in litigation against sovereign states."

Finally, the document was categorical in its conclusion: "The plaintiffs' motion for the imposition of issue preclusion sanctions, adverse inferences, and monetary sanctions for contempt against Argentina is inconsistent with principles of international comity and reciprocity and with the FSIA and must be denied."

The reference to the FSIA (Foreign Sovereign Immunities Act) reinforces the central thesis: sovereign immunity can't be undermined through disproportionate procedural sanctions.

Since the beginning of Javier Milei's presidency, the U.S. Department of Justice has systematically supported the position of the Argentine Republic in this case, marking a difference from earlier stages of the litigation.

From the Office of the Treasury Attorney General, officials emphasized: "This support highlights the technical and legal soundness of the filings submitted by the Argentine State, which are based on recognized principles of international law and on respect for the rules governing relations between states and sovereign immunity."

They also stressed Argentina's compliance during the discovery process: "For more than two years, Argentina complied in good faith with the discovery process, prioritizing respect for court orders. During that period, periodic productions were made that exceeded 115,000 pages."

They added a key point for the official defense: "Despite the broad access to information, the plaintiffs failed to find evidence to support their accusations."

The volume—more than 115,000 pages produced—constitutes one of the Government's central arguments to demonstrate cooperation and rule out any obstructive conduct.

In recent days, Argentina requested a suspension of discovery before Judge Preska. After the court's denial, the Argentine State initiated the appeal process before the Court of Appeals for the Second Circuit.

The parties have already submitted their arguments within the deadlines set by the court. Argentina's defense team expressed its confidence "in the reasonableness of the court to reject a disproportionate and inadmissible motion."

Currently, the process is going through a decisive stage. A decision is pending on the appeal on the merits, while two other appeals related to the delivery of YPF shares and to the discovery process itself remain pending.

From the Office of the Treasury Attorney General, officials also stated that "the support received at the international level and the natural reaction of the markets regarding expectations about the resolution of the litigation confirm the foundations of the strategy outlined by Argentina's defense."

The explicit support of the U.S. government not only reinforces the Argentine legal position, but also sends a clear political signal on the international stage: the U.S. administration recognizes the validity of the sovereign arguments invoked by the Argentine State.

In litigation that could have multibillion-dollar consequences and that directly affects the country's financial stability, the institutional backing of the United States strengthens the strategy adopted by the Government and consolidates the official narrative that the defense is solidly grounded in international law and in principles of sovereign immunity.