Milei steps up pressure on oil companies over Malvinas

Argentina's President Javier Milei is intensifying pressure on oil companies operating near the Malvinas Islands, also known as the Falkland Islands. The conflict over the islands dates back to 1982, when Britain and Argentina fought a 74-day war over sovereignty. Milei's administration has filed criminal complaints against 45 to 60 companies and individuals involved in the exploration and exploitation of hydrocarbons in the North Malvinas Basin, without Argentine authorization.

The criminal complaint targets various entities, including shareholders, directors, managers, and others linked to the unauthorized activities. If found guilty, the alleged offenders could face penalties of up to 20 years in prison and disqualification from operating in Argentina. The sanctions extend to those who may have been involved in the punishable act, barring them from entering agreements with the Argentine government and accessing tax benefits or joining investment incentive regimes.

Milei's government is also pushing for stricter legislation to combat unauthorised hydrocarbon activity around the islands. The administration has announced budgetary measures to advance the construction of a naval base in Tierra del Fuego, intended as a logistics hub rather than a military facility. Argentina has previously sanctioned Rockhopper Exploration and Navitas Petroleum for their involvement in the illegal activities in the disputed territory.

The dispute has gained new attention following US President Donald Trump's remarks about reviewing the US's neutrality on the matter. Milei has seized upon Trump's comments to bolster Argentina's claim over the islands, arguing that it complies with a UN resolution calling for both countries to refrain from unilateral actions while the sovereignty dispute remains unresolved. The La Libertad Avanza leader emphasized that there are positive changes in the world that favor Argentina's claim.