ANSA Mondo49 minutes agoPolitics1 min readItaly

Argentina warns 180 companies on the Malvinas: choose between operating or risk sanctions

Quick Look

The Argentine government has notified 180 companies linked to oil activities in the Malvinas Islands that they must choose between continuing to operate there or risk sanctions in Argentina, relying on law 26,659 to strengthen the territorial claim; following the announcement, shares of Rockhopper and Navitas fell in London and Tel Aviv.

AI-generated summary

Why It Matters

The notification is based on law 26,659 passed in 2011, which aims to discourage oil activities in the waters of the Malvinas, and is part of President Milei's new strategy to strengthen Argentina's claim to the islands, a British overseas territory.

Font size

The Argentine government has notified 180 companies linked to oil activities in the Malvinas Islands, claimed by Buenos Aires and a British overseas territory, that they 'will have to choose between continuing to operate there or risk sanctions in Argentina'. Foreign Minister Pablo Quirno said this, explaining that the measure also concerns oil, financial and insurance suppliers.

The measure, based on law 26,659, aims to discourage activities in the waters of the archipelago and is part of the new strategy announced by President Javier Milei to strengthen Argentina's claim. Quirno underlined that, compared to 2011, when the law was approved, 'today Argentina has a strong negotiating tool with Vaca Muerta'.

The government also intends to amend the legislation to broaden sanctions and allow companies that leave the Malvinas to return to operating in Argentina. Meanwhile, after Milei's announcements, the shares of Rockhopper and Navitas, involved in the Sea Lion oil project, lost 6.3% in London and 2.3% in Tel Aviv respectively.

What to Watch

AI outlook — possibilities, not facts

Some of the 180 notified companies will decide to cease operations in the Malvinas to avoid sanctions in Argentina
Likely · Within months
Argentina will change legislation to broaden sanctions and allow companies that leave the Malvinas to return to operating in Argentina
Likely · Within months

Open Questions

What will be the specific sanctions foreseen for companies that continue to operate in the Malvinas?
How will the UK respond to the new Argentine pressure on the Malvinas?
How many of the 180 notified companies will decide to leave operations in the Malvinas?