Sept 17 (Reuters) – The government of Argentina introduced a bill to suppress companies that operate on the Falkland Islands, which could escalate tensions with the United Kingdom over the territory controlled by the British but claimed by Argentina.
The proposal presented this Thursday tightens sanctions against companies and individuals who illegally participate in activities on the Falkland Islands and in the maritime spaces and the continental shelf of Argentina in “any type of activity aimed at the use of renewable or non-renewable natural resources” without authorization from Argentine authorities.
In addition, it creates a National Security Council, led by the President of Argentina, to oversee national security policy and protect critical infrastructure and national sovereignty.
Its seven members will include the President’s Chief of Staff, the Minister of Foreign Affairs, the Minister of Defense, the Minister of Economy, the National Intelligence Secretary and the President’s Legal Secretary.
The bill aims to “punish those who illegally exploit our natural resources, create incentives for them to cease such conduct and provide the national government with tools to protect itself against external threats,” the Presidency said in a statement on Thursday.
The new bill aims to reformulate the 2011 legislation with a stricter regime and harsher sanctions directed at companies, their shareholders and suppliers, the statement added.
The Argentine government said last week that it had opened sanctioning proceedings against at least 60 companies and individuals tied to offshore oil exploration near the islands, which the United Kingdom calls the Falkland Islands.
Argentina, which invaded the islands in 1982 and fought a 10-week war over them before surrendering to the United Kingdom, accelerated efforts to repress the companies involved in the Sea Lion oil project since the start of this month, when U.S. President Donald Trump suggested that Washington could reconsider its traditionally neutral stance in the Falklands dispute.
Trump’s remarks came amid his frustration with what he considered limited UK support for the US-led military operations in the Middle East.
Center-left opponents have long accused Milei of not doing enough to defend Argentina’s claim to the Malvinas and now say he is acting for political reasons, aiming for a likely bid for reelection in 2027.
The owners of the offshore Sea Lion project, Navitas Petroleum and Rockhopper Exploration, said the oil field project has valid licenses granted by the Falkland Islands government and indicated that they do not expect Milei’s actions to harm the project’s development.
(Reporting by Leila Miller, Lucinda Elliott, and Aida Pelaez-Fernandez; )
