Argentina angry as Malvinas-Chile shipping route set for revival

Business representatives from the Falkland Islands Government arrived in Punta Arenas, southern Chile, on Monday to relaunch a maritime shipping route between their ports.

The move comes as President Javier Milei’s government seeks to halt an oil project in the disputed archipelago, which is claimed by Argentina and controlled by the United Kingdom.

Milei’s government fears Chile could provide logistical support to the islands for the development of the Sea Lion oil project, whose first deep-water drilling operations are due to begin next year in the South Atlantic, around 220 kilometres north of the territory administered by the United Kingdom.

Argentina on Monday gave the British government a two-week deadline to adopt “the necessary measures to prevent the start or continuation” of hydrocarbon exploitation before it turns to the international courts.

Louise Ellis, deputy director of economic development for the Falkland Islands Government, told AFP in Punta Arenas on Monday that the new shipping route with Chile, expected to begin operating between November and December, had “nothing” to do with transporting critical cargo for the Sea Lion project.

“This project [for a new route] began before Sea Lion and has always been about what the Falkland Islands and our communities need now,” the official said.

The route, which was discontinued after being deemed unviable in the 2000s, will primarily be used to import construction materials and fresh products such as food and drink. 

The vessel, which Ellis said would sail once a month, will have a capacity of 2,600 cubic metres – a small size for international trade.

The link with Chile, around 900 kilometres away, will complement the existing connection between the archipelago, which has a population of around 3,600, and Montevideo, around 2,000 kilometres away.

Argentina’s Foreign Minister Pablo Quirno first raised concerns about potential “logistical assistance” Chile could provide to the Falklands for the exploitation of “hydrocarbons and fisheries” several weeks ago.

“We want it not to happen, and they are primarily in agreement,” he said at the time.

Milei’s government is pushing a bill through Congress to increase sanctions on those involved in hydrocarbon exploitation in the Malvinas.

Chile’s President José Antonio Kast, an ally of Milei, has avoided taking a position on the escalating tensions between Argentina and the UK.

Argentina lost a war against the United Kingdom in 1982 after attempting to retake the islands.