Kathmandu— Argentine President Javier Milei has threatened sanctions against companies drilling for oil near the Falkland Islands, accusing them of operating without Buenos Aires' approval and vowing to toughen penalties through urgent legislation, as he seeks to refocus attention on the sovereignty dispute amid declining domestic support and shifting US diplomatic signals.

Sanctions Targeting Sea Lion Project

President Milei announced in a televised address that he would seek approval for legislation to impose sanctions on companies operating near the Falkland Islands without Argentine authorization, specifically targeting the Sea Lion oil project developed by UK-based Rockhopper Exploration and Israel’s Navitas Petroleum.

The sanctions would extend beyond the two firms to include suppliers, shareholders, and directors, with companies potentially barred from operating in Argentina altogether, Milei stated. The project, located 140 miles north of the islands, has already faced legal challenges from Argentine war veterans and environmental lawyers seeking to halt it on grounds that it violates a UN resolution urging Argentina and the UK to avoid unilateral action around the islands.

International Reactions and Diplomatic Context

Britain’s Defence Secretary Wes Streeting dismissed Milei’s remarks as reflecting "domestic politics in Argentina rather than the Falkland Islands," reiterating that "the Falklands are British because Falkland Islanders choose to be British" and emphasizing the UK’s "absolute and unshakeable" commitment to the territory.

The UK frequently cites a 2013 referendum in which islanders voted overwhelmingly to remain British, a stance that has shaped diplomatic relations for decades. Meanwhile, Rockhopper Exploration stated it does not expect the sanctions to have a "material effect" on the Sea Lion project, which aims to begin drilling this year with production targeted for 2028.

Domestic Political Motivations

Milei’s renewed focus on the Falklands dispute is widely viewed as a strategic move to revive support for his libertarian presidency, as his approval ratings have fallen to 34 percent amid criticism of his austerity policies.

Al Jazeera correspondent Teresa Bo noted that the timing aligns with domestic political pressures, stating that "Milei’s approval ratings have been falling as Argentines feel the impact of his harsh austerity plan," and that the Malvinas issue remains one of the few topics capable of uniting Argentina’s divided political class.

Opposition MPs have accused Milei of exploiting the dispute for political gain, particularly as he seeks to counter perceptions of subservience in his relations with US President Donald Trump, whom he hopes to persuade to shift Washington’s neutral stance on the Falklands.

Milei’s government continues to push for legislative action on the sanctions, while the UK and project developers maintain their positions, with the dispute likely to remain a focal point in Argentina’s domestic politics and international diplomacy.

(With inputs from Al Jazeera)

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Originally published on abcnews.com.np.