Milei hardens Falklands stance with oil sanctions and defence push

Argentine President Javier Milei has said he will tighten sanctions on companies involved in oil projects around the Falkland/Malvinas Islands.

Milei also said he would increase defence resources in the south of the country and submit a bill to Congress aimed at strengthening Argentina’s response to what he described as violations of sovereignty.

In a televised address, Milei said he would sign a decree to accelerate sanctions under Argentine law against companies participating in oil and gas extraction activities in the territory, which Argentina considers its own but which remains under British control.

Speaking in an address to the nation early on Friday morning, Milei said the United Kingdom was facing a migration and economic crisis, adding that this meant Argentina would prevail in its claim over the Falkland Islands:

“If we look at the structural crisis in the United Kingdom, it is clear that the country is facing multiple crises on many fronts, including migration, demographics, and a difficult economic situation. It is clear that Argentina’s future is extremely promising and that Argentina will prevail.”

Milei said Argentina would intensify efforts to sanction not only the companies involved, but also their shareholders, executives, and suppliers.

“We will continue to prevent companies that are directly or indirectly involved in projects (on the islands) without Argentina’s permission from operating on Argentine territory,” the Argentine leader said.

He also stated that the government would issue an emergency decree to expand defence resources, under which a naval base would be built in the nearby province of Tierra del Fuego and telecommunications capabilities would be strengthened.

Milei added that he would submit an urgent “national defence of sovereignty” bill to Congress in order to stiffen penalties for unauthorised activities around the islands, extend sanctions to suppliers, and broaden the legal framework to cover other activities affecting Argentina’s natural resources.

Milei noted that Argentina had determined that the Sea Lion offshore project, operated by Navitas Petroleum and Rockhopper Exploration, could begin oil exploration work in the coming months, presenting an imminent threat to Argentine interests.

The remarks mark a harder line from Milei, who had previously called for the Falkland Islands dispute to be resolved through diplomacy even while seeking warmer ties with Britain.

A British overseas territory located roughly 500 km east of the Argentine mainland, the Falkland Islands have long been claimed by Argentina.

Britain has controlled the islands since 1833, and the two countries fought a brief war over them in 1982.

London maintains that residents of the Falkland Islands voted on their political status and right to self-determination in a referendum held in March 2013. An overwhelming majority of 99.8% voted to remain an overseas territory of the United Kingdom.

In his speech, Milei stated that residents of the Falkland Islands do not possess the right to self-determination and called on the country to unite around its claim to the islands.

Arguing that the global wind is currently “blowing in favour of Argentina’s demands”, Milei said: “A short time ago, President [Donald] Trump announced that the US is reconsidering its historic stance on the Malvinas islands.”

The British conservative newspaper The Telegraph wrote that the move would appease the US president, who intervened in the dispute and implied he would not assist the United Kingdom in fighting off an invasion of the Falkland Islands.

Asked whether the US would “come to the aid” of Britain, Trump referred to his confrontation with Iran, saying: “Your country was not there to help me.”

Trump then questioned whether Britain would have the capacity to defend the islands, telling GB News:

“Look, I was there when the first war broke out. That was a very long time ago, and I watched it very closely. You handled yourselves very well. You took the islands back quite decisively, but it is very far away.”

Speculation is mounting that Buenos Aires and Washington are discussing an agreement granting the US access to oil extracted off the Malvinas.

On the eve of Milei’s speech, Argentine Minister of Energy and Mining Daniel Gonzalez Casartelli was in Washington to discuss energy investments with American oil companies and members of the Trump administration.

Meanwhile, Benjamin Netanyahu’s son Yair clashed with the British right by demanding that the Falkland Islands be placed under Argentine sovereignty.

According to Bloomberg, Argentina is currently in the midst of an oil boom. Drilling activity is accelerating in the Vaca Muerta shale formation in Patagonia, which already produces more than 1 million barrels of oil and gas per day.

The country also has some offshore production operations, and exploration activities have been carried out in South Atlantic waters in recent years.

Meanwhile, Milei met Sarah Rogers, a senior US State Department official, at a conservative political forum held in Chile.

Reiterating Argentina’s claim to the islands, Milei said: “We must take back these islands, which are negligible in national terms. There is no other way forward. This is the best way to pay tribute to those who sacrificed their lives for this cause.”