Argentina has moved to enforce a crackdown on oil exploration around the Falkland Islands, launching sanction proceedings against 45 people and companies.
President Javier Milei’s office announced the new move on Saturday morning in a post on X, a day after he vowed tougher action against companies operating in the British overseas territory and reiterated the country’s claim on the area.
But Prime Minister Andy Burnham has yet to say anything about the escalating rhetoric from Argentina’s president.
Downing Street has instead responded on his behalf, insisting the UK’s position on the islands is ‘unwavering’ and saying Burnham ‘fully supports the wishes of the islanders to remain a British overseas territory’.
Burnham has come under growing pressure to personally respond, with Reform UK accusing the Prime Minister of being ‘too weak’ to stand up to Argentina over the Falklands.
The Argentinian government said proceedings could also be brought against shareholders and companies providing services to firms involved in the oil projects.
The announcement did not identify those facing proceedings.
At the heart of the row are vast oil reserves which could deliver a £4billion windfall for the Falkland Islands.
The Sea Lion field, 150 miles north of Port Stanley, is estimated to contain around 900 million barrels of oil, with production expected to begin in 2028.
Argentina has moved to enforce a crackdown on oil exploration around the Falkland Islands, launching sanction proceedings against 45 people and companies
President Javier Milei’s office announced the new move on Saturday morning in a post on X, a day after he vowed tougher action against companies operating in the British overseas territory and reiterated the country’s claim on the area
Argentina claims the islands and their surrounding waters as its own and says the oil cannot be extracted without its permission.
The project could generate £4billion for the Falklands over 35 years, transforming the islands’ economy.
In a national address on Friday, Mr Milei demanded a Hong Kong-style handover of the Falklands to Argentina as part of what he called a ‘consensus solution’.
He reiterated the country’s claim on the islands and said he would introduce sanctions on any oil companies working in the area.
The Argentine president insisted his countrymen ‘do not believe in war’ and would not ‘start yelling like savages’ about the contentious archipelago.
Renewed tensions over the British overseas territory came after US President Donald Trump hinted the US would not help the UK in a future Falklands conflict.
Following Mr Milei’s address, Foreign Secretary Ed Miliband said in a post on X: ‘The UK’s position on the Falkland Islands is unwavering.
‘The Islands are British and will remain so because that is the overwhelming position of the Islanders.
‘Their right of self-determination is paramount, grounded in international law and we will resolutely uphold it.’
Defence Secretary Wes Streeting said the UK’s commitment to the Falklands was ‘absolute and unshakeable’.
Downing Street suggested there would be no UK diplomatic response to Mr Milei’s threats, with the UK seeking to bolster ties with the country.
In a 2013 referendum, the Falkland Islanders voted overwhelmingly to remain a British overseas territory, with 99.8% voting in favour and just three votes against.
Although the US is formally neutral, Washington provided support for Britain’s campaign to retake the islands after the Argentinian invasion in 1982.
It sparked the Falklands War which saw 255 British service deaths in just over 70 bloody days. It also led to the deaths of 655 Argentinians and three Falkland Islanders.
In his speech, Mr Milei said: ‘Our role and relevance as a country in the world has changed dramatically.
‘The Falklands are our future – we need to recover these islands which are nationally relevant. There is no other path forward.’
He said he would sign decrees to introduce sanctions against any companies working on oil production in the area.
And he declared the Sea Lion oilfield, owned by an Israeli and a British firm where production is expected to begin in 2028, a ‘clear and present danger’ to the country’s claims.
‘If we do not act swiftly in a few months, they will have the material capacity to access the oil that lies underneath our sea. Something that has never happened before,’ he said.
British-based oil exploration company Rockhopper, which is working with Navitas on the oilfield near the islands, said it did not expect developments by the Argentinian government to have a ‘material effect’ on the project.
A No 10 spokeswoman said the UK supports the right of the Falkland Islanders to develop their natural resources for their own economic benefit, and ‘this is an integral part of their right to self-determination’.
The Argentinian leader announced plans to boost its defence resources with a new naval base in Tierre del Fuego in the south of the country.
Mr Milei said the US was ‘assessing their historical position in regard to the Falklands’.
Asked whether there would be a diplomatic response to his threats, the Downing Street spokeswoman said the UK continues ‘to have a diplomatic relationship with Argentina, and from our perspective we want to continue to strengthen that’.
The US president on Thursday suggested he would not back the UK in a fight over the territory, pointing to the lack of support for his war in Iran.
No 10 declined to comment on Mr Trump’s remarks, saying they were ‘a matter for the US president’.
This is a breaking news story, more to follow.
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