Argentina: An Overview

Introduction

On 10 December 2023, a new administration took office in Argentina, led by President Javier Milei of “La Libertad Avanza” party.

On 26 October 2025, the mid-term national congressional elections were held, in which half of the seats in the Chamber of Deputies, the lower house of the Argentine Congress, and one-third of the seats in the Senate, the upper house, were filled. Following the 2025 mid-term national congressional elections, President Milei’s party, La Libertad Avanza, secured 20 of the 72 representatives in the Senate and 93 of the 257 representatives in the Chamber of Deputies.

Since the current administration took office, a large number of measures aimed at reducing state spending, deregulating the economy and limiting government intervention in the private sector have been adopted, and the current administration has indicated that it intends to continue implementing business-friendly policies, including by cutting taxes, among other measures.

In June 2024, the National Congress approved Milei’s most ambitious bill known as “Bases and Starting Points for the Freedom of Argentines” (the “Bases Law”).

The Bases Law includes a Promotional Regime for Large Investments (Régimen de Incentivo para Grandes Inversiones or RIGI), a promotional regime granting tax, customs and foreign exchange (FX) benefits to qualifying projects, with a guarantee of regulatory, customs, fiscal and FX stability for 30 years counted as from the respective regime accession date. Qualifying projects (representing investments in excess of USD200 million must belong to the following sectors of the economy: industrial forestry, tourism, infrastructure, mining, technology, iron and steel industry, energy, oil and gas. More than ten projects have been already approved by the national government, representing investments for an aggregate amount of over USD25 billion, many of which are already under development.

Main Industry Sectors

The energy, mining and technology sectors have been particularly active, and explain most of the transactional activity (M&As, lending and capital markets, project finance, etc) in recent years. This is a trend that should continue for the years ahead as these sectors benefit from the current local and global context.

Oil and gas

Argentina’s energy rebirth is based on the development of shale gas and shale oil projects. Argentina has the second largest volume of shale gas reserves in the world and the fourth largest shale oil reserves. Shale oil and shale gas production represents 50% of the national output. More than 50% of the unconventional resources are located in the Neuquén Basin, particularly in the Vaca Muerta formation. While the country still lacks the appropriate infrastructure to transport and export the gas outputs, many projects are underway while others are at different stages of development. Indeed, significant progress has been made during the last years to construct necessary incremental transportation capacity of oil and gas.

LNG

The development of large-scale LNG projects in Argentina is one of the top priorities for the current administration and energy companies operating in the country. Specific projects are currently under development. The mentioned RIGI is key to unlocking these types of projects.

Energy transition-related projects

Clean energy transition is driving a significant increase in the global demand for minerals (not only lithium but also cobalt, nickel, copper and other rare earths elements). Argentina alone accounts for over 20% of the world’s lithium reserves, has the largest project pipeline in the planet, and offers certain competitive advantages from a cost perspective. Argentina’s lithium production has increased significantly, from less than 1% of the global production in 1994 to approximately 8% in 2025. Further, experts believe that Argentina’s production will represent 13% of the world market share by 2030.

Renewable energy (mainly wind and solar)

Renewable energy is also a priority for local and international industry players. In addition, there is growing interest in blue and green hydrogen projects, which are being developed at an industrial scale, albeit still at a relatively early stage).

Power transmission

Private investment in the expansion of the power transmission system is also expected. Power transmission constraints are currently one of the main obstacles for the continuous expansion of Argentina’s energy sector. Recently, the Argentine government announced the public tender for the sale of 50% of the share capital of Citelec, controlling shareholder of Transener, the operator of the Argentine electric transmission system, owning over 12,400 kms of transmission lines throughout Argentina.

In addition, the Argentine government recently concluded the privatisation of the Comahue hydroelectric dams, which are landmark deals of the Milei era (totalling approximately USD700 million), representing one of the largest privatisations in the electric energy sector since the 1990s.

Technology

The technology sector has also shown great potential, with many local companies having achieved “unicorn” status in recent years and now playing a regional and international role.

The local venture capital ecosystem is reasonably well developed and foreign angels are active in the country.

Agribusiness

Argentina benefits from a significant role in the global agricultural economy. Argentina is one of the largest producers and exporters of soy-derived products. Also, soy and sugar cane are extensively cultivated for biofuel production, thereby placing the country as a leading player in the global biodiesel market.

Regulatory Changes

Given the ambitious agenda of President Milei, several regulatory changes (including the privatisation of some state-controlled companies and the normalisation of the foreign exchange market) have been introduced and more are expected in the short term, in addition to those included in the Bases Law.

In anticipation of structural changes, the Milei Administration has introduced, and it is expected to keep introducing, long-awaited red tape amendments to reduce inefficiencies in dealings with the government. Further, updates to tax, labour, capital markets and corporate laws and regulations are being discussed. The Bases Law (including the RIGI) has triggered novel investment opportunities in the country and accelerate projects currently under analysis.

Lastly, in February 2026, the Argentine government announced a reciprocal trade and investment agreement with the United States of America, seeking to drive long-term growth, expand opportunity, and create a transparent and rules-based environment for commerce and innovation.

All these changes and Milei’s agenda should favour M&A activity generally as well as the potential re-opening of the international capital and credit markets for the sovereign, certain sub-sovereigns and blue-chip corporates. However, given Argentina’s history of volatility, foreign investors are monitoring these economic and political developments with caution.

Consequently, it is reasonable to expect that transactional activity in the coming years will be driven primarily by companies already operating within the country, alongside ongoing analysis and preliminary steps regarding direct foreign investment and cross-border financing.