Argentine President Javier Milei has threatened sanctions against companies drilling for oil near the Falkland Islands, according to Al Jazeera. In a televised address on Thursday, Milei said he would seek approval of urgent legislation to toughen penalties for companies operating near the islands without approval from Buenos Aires. Argentina claims sovereignty over the South Atlantic archipelago, which it calls Las Malvinas.

Targeted Sanctions Against Oil Projects

The sanctions would target the Sea Lion project, a deep-sea oil field about 140 miles (220 kilometres) north of the islands being developed by the UK’s Rockhopper Exploration and Israel’s Navitas Petroleum. Milei said the sanctions would extend beyond the two firms to suppliers, shareholders and directors and that companies involved could be barred from operating in Argentina altogether.

Argentine war veterans and environmental lawyers have already filed a lawsuit seeking to halt the project, which Milei said violates a United Nations resolution urging Argentina and the UK to avoid unilateral action around the islands. Britain’s Defence Secretary, Wes Streeting, said on Friday that Milei’s statement “tells us more about domestic politics in Argentina than it does about the Falkland Islands.”

Political Calculus Behind the Move

“The Falklands are British because Falkland Islanders choose to be British,” he added. “Our commitment to the Falklands is absolute and unshakeable.” London frequently refers to a 2013 referendum in which the roughly 4,000 islanders voted overwhelmingly to remain British in response to questions over sovereignty. Rockhopper said in a statement that it does not expect the latest development to have a “material effect” on the Sea Lion project, the company hopes to start drilling this year, with production by 2028.

Milei’s revival of the dispute is seen as a bid to overturn domestic criticism of his relations with United States President Donald Trump, which some have called subservient. However, the Argentine president hopes to show that the relationship has the potential to reap rewards, with Trump having hinted that Washington could alter its neutral stance on the Falklands to turn it in Argentina’s favour.

Historical and Domestic Context

Trump recently declined to say whether the US would back the UK in a future Falklands conflict, criticising Britain instead for not doing more to support the US-led bombing campaign against Iran. Britain and Argentina fought the 1982 war over the islands that killed more than 900 people from both sides; the conflict still shapes Argentina’s national identity and remains one of the few issues that unites its otherwise divided political class.

Milei has faced accusations from opposition MPs that he is exploiting the dispute for political gain as his approval ratings slump to 34 percent, Al Jazeera’s correspondent in Buenos Aires, Teresa Bo, said the timing owes as much to domestic politics as to Washington. “Milei’s approval ratings have been falling as Argentines feel the impact of his harsh austerity plan,” she said — “And the Malvinas are one of the few issues capable of uniting Argentines across the political spectrum.”