Argentina's Milei vows sanctions on Falklands oil project amid US comments

President Javier Milei said on Thursday that Argentina will impose tougher sanctions on companies participating in the Sea Lion offshore oil project, which is planned by British firm Rockhopper Exploration and Israel's Navitas Petroleum about 220 km north of the Falkland Islands. He also announced additional funding for a naval base in Tierra del Fuego to strengthen Argentina's presence in the South Atlantic.

Milei linked the move to recent comments by U.S. President Donald Trump, who suggested Washington might reconsider its neutral stance on the islands' sovereignty. "The United States is considering this change in position because it knows that Argentina has a reliable partner, aligned with Western values, in a strategically important position that can be a valuable ally in the decades to come," Milei said in a televised address.

Argentina claims the waters around the islands as its own and considers the Sea Lion project illegal exploitation of its resources. "Argentina will not stand idly by. Any further advance on the Malvinas Islands will be considered a violation of our national security," Milei added.

British officials reiterated that sovereignty rests with the United Kingdom and that the islanders' right to self-determination, affirmed in a 2013 referendum, remains paramount. A spokesperson for Prime Minister Andy Burnham said Britain would not yield the islands.

Opposition lawmakers accused Milei of using the sovereignty issue to boost his political standing ahead of next year’s election. Milei responded that while policy debates continue, the Falklands (Malvinas) issue transcends partisan differences.

The proposed sanctions would target not only the drilling companies but also their suppliers, shareholders and directors, potentially barring them from operating or signing contracts in Argentina. The funding for the naval base includes upgrades to telecommunications infrastructure in the southern province.