Argentina's Milei vows oil sanctions in sovereignty push

BUENOS AIRES/LONDON — Argentine President Javier Milei said he would sanction oil companies drilling in an archipelago in the South Atlantic, in a move which could inflame tensions with the United Kingdom.

Milei's comments in a televised national address on Thursday came days after US President Donald Trump said he was reviewing the United States' position on the remote archipelago. Britain and Argentina fought a 10-week war in 1982 over the Malvinas Islands, which are called the Falkland Islands by the UK.

The prospect of two oil firms carrying out exploration in the Malvinas Islands was an urgent threat to Argentine interests, Milei said.

"There are winds of change in the world that are favorable to our claim," he said, alluding to Trump's threat to change Washington's stance.

Milei had previously favored diplomacy as the best way to pursue Argentina's claim to the islands.

His tougher tone came after 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 (Britain) have the capacity to do that," Trump said.

Britain insisted on Friday that the islands "are British" after Milei's remarks, citing Washington's readiness to review its position.

A potential shift in the US position toward the islands was included among a range of options considered by the Pentagon earlier this year to pressure NATO allies it believes failed to support US military operations in the fighting with Iran.

Seeking to ratchet up sovereignty push, Milei said he would send Congress an urgent national sovereignty defense 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.

The Sea Lion project is operated by Tel Aviv-listed Navitas Petroleum, with London-listed Rockhopper Exploration among its shareholders with a 35 percent stake.

Development work could begin in the coming months.

Rockhopper stock was down 8 percent on Friday morning.

Rockhopper says the Sea Lion project has an estimated 1.7 billion barrels of oil, enough to meet global oil demand for 17 days.

The two firms did not immediately respond to requests for comment following Milei's address.

Milei said Argentina would boost efforts to levy penalties not only against the companies involved, but also against their shareholders, directors and suppliers.

AGENCIES VIA XINHUA