A United States appeals court has overturned a $16.1 billion judgment against Argentina stemming from the country's seizure of energy company YPF. The ruling represents a significant legal victory for Argentina in a long-running dispute over the nationalization of the oil and gas company.

The original judgment was related to Argentina's 2012 expropriation of a majority stake in YPF, which had been controlled by Spanish energy giant Repsol. The seizure was part of the Argentine government's efforts to gain control over the country's energy resources during a period of economic uncertainty.

The appeals court decision voids what would have been a substantial financial obligation for Argentina, which has faced ongoing economic challenges and debt restructuring efforts in recent years. The country has been working to resolve various international legal disputes as it seeks to stabilize its economy and restore investor confidence.

Details about the specific legal grounds for the appeals court's decision were not immediately available. The case highlights the complex legal issues that can arise when governments nationalize foreign-owned assets and the lengthy litigation that often follows such actions.

The ruling comes as Argentina continues to navigate relationships with international creditors and investors while managing domestic economic pressures. The YPF dispute has been one of several high-profile legal cases involving Argentina's sovereign actions and their impact on foreign investors.