Argentina’s President Milei prepares bill on sanctions for activities in the Falklands
Argentine President Javier Milei is preparing a bill to strengthen sanctions against companies operating in the Falkland Islands. The document, titled the “Law on the Protection of National Sovereignty,” is scheduled to be submitted to the lower house of parliament this week, MercoPress reports.
Changes to the existing law
The initiative provides for amendments to Law No. 26,659, which already prohibits unauthorized hydrocarbon activities on the disputed continental shelf. The current law provides for disqualification from conducting such activities for a period of five to 20 years.
Milei announced the bill on September 3 during a televised address. At the same time, he announced a decree intended to speed up existing procedures for imposing sanctions. The Argentine government says it has opened proceedings against at least 60 companies and individuals connected to offshore oil exploration near the archipelago, which Argentina calls the Malvinas Islands and considers its territory despite British control.
Possible restrictions
Marcelo Segini’s aide told Reuters that the bill provides for harsher penalties for unauthorized operations. According to him, the sanctions could also be extended to affiliated entities and other activities affecting Argentina’s natural resources. The government, Segini said, is considering including the fishing industry, which is important to the islands’ economy, in the document, but has not officially confirmed such a scope of restrictions.
More current news is available on the UA.News Telegram channel Telegram.
Last week, a criminal complaint was filed against companies connected to the offshore Sea Lion project, which is being developed by Israel’s Navitas Petroleum and Britain’s Rockhopper Exploration. The companies said the project has valid licenses from the Falkland Islands government and that Milei’s actions will not disrupt its development.
A document from the Argentine government reviewed by Reuters names shareholders and financial intermediaries among potential targets of sanctions, including Vanguard, First Eagle, Canaccord, Interactive Investor and Hargreaves Lansdown. Oilfield services companies SLB, Baker Hughes and Halliburton said in recent days that they would not take part in work on the islands.
Milei’s libertarian coalition does not have a majority in Congress, so the bill will be a legislative test for the president. Opposition lawmaker Aldo Leiva said that Milei is using the Malvinas Islands issue for political opportunism.
