Milei orders arbitration proceedings against the UK over the Sea Lion project

President Javier Milei's administration announced on Monday that Argentina will initiate international arbitration proceedings against the United Kingdom regarding oil exploration and exploitation in the South Atlantic, near the Malvinas (Falkland) Islands. The administration claims these actions are "illegitimate" and violate international law.

Milei instructed the Foreign Ministry and legal teams to start the arbitration process against the UK over the Sea Lion project, which is projected to commence oil extraction in 2028 from waters adjacent to the islands. These islands, administered by the UK, are at the core of a prolonged sovereignty dispute between Argentina and the United Kingdom.

If the UK does not cease the alleged illegal exploitation within two weeks, Argentina will promptly request provisional measures from the International Tribunal for the Law of the Sea (ITLOS) to safeguard its sovereign rights. This action comes amid the ongoing dispute over the Malvinas Islands, a topic Buenos Aires has pursued through diplomatic channels since the end of the 1982 war.

The President's office quoted UN General Assembly Resolution 2065, recognizing the sovereignty dispute between Argentina and the UK, and invoked Resolution 31/49, which Argentina claims prevents unilateral actions altering the situation in the disputed territories. The government asserts that unilateral resource exploitation infringes upon international law and inflicts "irreversible and irreparable harm" on Argentina's sovereign rights.

It also claims the arbitration aims to prevent the issuance of new exploration permits on what Argentina considers part of its continental shelf. Milei's administration was reportedly motivated to revive the sovereignty claim by comments from U.S. President Donald Trump, who suggested he could reconsider Washington's neutrality in the dispute.

In September, Milei submitted a bill to Argentina's Congress to tighten sanctions on the exploitation of natural resources on the islands and to resume the construction of a military base in Tierra del Fuego. A regional judge had previously ordered the suspension of the oil project following a request from war veterans and environmental lawyers.

The United Kingdom maintains that the islanders have the right to develop their natural resources and supports the companies involved in the project. The United Nations has consistently recognized the sovereignty dispute between the two nations and has called for both sides to avoid unilateral decisions concerning the territory.