Argentina Increases Pressure on Falklands Sovereignty with Oil Sanctions
Escalating Tensions Over Falklands Sovereignty and Oil Exploration
By Nicolás Misculin and Sarah Young
BUENOS AIRES/LONDON, Sept 3 (Reuters) - Argentine President Javier Milei said he would sanction oil companies drilling in the Falkland Islands, stepping up the country's claims to sovereignty over the British overseas territory.
Milei's comments in a televised national address on Thursday came days after U.S. President Donald Trump said he was reviewing the United States' neutral position on the remote archipelago in the South Atlantic.
The prospect of oil firms carrying out exploration in the islands, which Argentina calls Las Malvinas, was an urgent threat to Argentine interests, Milei said, 44 years after his country was defeated by Britain in a war over sovereignty.
Milei, a Trump ally, referenced the possible shift in the U.S. position and said "winds of change" favoured the Argentine claim. He said he was sending Congress a bill aimed at strengthening Argentina's response to violations of its sovereignty.
British Response to Argentina's Actions
Official Statements from the UK
BRITISH POSITION 'UNWAVERING'
Britain, which has controlled the territory since 1833, said on Friday that its position on the islands was "unwavering".
"The Islands are British and will remain so because that is the overwhelming position of the Islanders," British foreign minister Ed Miliband said on X.
"Their right of self-determination is paramount, grounded in international law and we will resolutely uphold it."
British defence minister Wes Streeting added that Milei's words reflected "domestic politics in Argentina".
Changing Diplomatic Approaches
Milei had previously favoured diplomacy as the best way to pursue Argentina's claim to the Falklands, but with more oil drilling due in the coming months and Trump's repeated mention of the islands he is now striking a tougher tone.
Trump told GB News on Thursday that he was not sure if Britain would be prepared to fight for the islands again.
"I just don't know if you have the capacity to do that," Trump said. "The Falklands is very interesting because your country is not the same country it was 20 years ago, 25 years ago."
A potential shift in the U.S. position towards the Falklands was included among a range of options considered by the Pentagon earlier this year to pressure NATO allies it believed failed to support U.S. military operations in the war with Iran.
In 1982, Britain's then-Prime Minister Margaret Thatcher, whom Milei in 2023 described as a "great leader", sent a naval task force to the South Atlantic following an Argentinian invasion. Britain regained control of the islands after 74 days of fighting which left more than 900 people dead.
But in Thursday's address, Milei said Britain was now a country "in decline".
Oil Exploration and Economic Stakes
Sanctions and Legislative Actions
SEA LION OILFIELD
Saying the islands were part of Argentina's future, Milei said he would send Congress an urgent "national sovereignty defence" bill to toughen penalties for unauthorized operations around the islands, extend sanctions to suppliers and broaden the legal framework to cover other activities affecting Argentina's natural resources.
Key Oilfields and Companies Involved
The Sea Lion Oilfield
The Sea Lion oilfield, which lies about 140 miles north of the Falkland Islands, is operated by Tel Aviv-listed Navitas Petroleum and also has London-listed Rockhopper Exploration among its shareholders.
In 2010, when drilling first found the field, Argentina said it was illegal. It is estimated to hold 1.7 billion barrels of oil, making it a major discovery in global terms.
Rockhopper stock fell 6% on Friday morning, while Navitas was down 2%. The companies said in a statement they had valid petroleum licences.
"The partnership believes that the recent developments are not expected to have a material effect on the development activities of the Sea Lion Project, including the timetable for completion of the Project's development," they said.
Reporting Credits
(Reporting by Nicolas Misculin and Kylie Madry and Sarah Young in London; writing by Sarah Young; Editing by Jacqueline Wong and Alex Richardson)