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Argentina asks for suspension of YPF's 'illegitimate discovery process' in U.S. courts

Argentina's Treasury asked a New York Court on Wednesday to suspend discovery in the case of nationalization by state-owned oil firm YPF, describing it as illegitimate.

Argentina wants to 'overturn' the $16.1 billion award by a U.S. district judge to Petersen Energia Inversora, and Eton Park Capital Management for alleged losses resulting from YPF nationalization.

Burford Capital, a UK-based company, is financing the litigation and will receive a large portion of any award.

In a shared statement on X, Argentina's Treasury announced that it had filed a formal request with Southern District Court of New York for the suspension of the discovery process as ordered by the court. It also requested the withdrawal of the request for contempt against Argentina made by the plaintiffs. The Treasury said that Burford requested information regarding Argentina's Central Bank gold reserves.

The institution stated that "the discovery process initiated and ordered by the Court has been completely distorted, and transformed into a weapon of 'illegitimate harassing' intended to hamper the normal functioning the Argentinean State."

The court said that the current discovery requests are intrusive and disproportionate and that the administration of President Javier Milei, who came to power in 2023, had complied?fully with the legal process, delivered all the information requested by the court, and?fully followed the legal procedure.

Argentina claims that the U.S. court case brought against it for securing control of YPF, the state-owned oil company, is not the right place to hear the case. Instead the case should be heard by local courts under local laws.

(source: Reuters)