Argentina rejects UK government's 'guide' for Malvinas-related businesses

The British government has said Argentine law does not apply to waters around the Malvinas (Falkland) Islands, offering its backing to companies operating in the disputed area as Buenos Aires steps up legal action against businesses involved in oil and fishing activities.

Argentina's Foreign Ministry responded Tuesday by expressing its “strongest rejection” of the British guidance, which it said sought to promote commercial and hydrocarbon activities in the “Falkland Islands, South Georgia and the South Sandwich Islands,” as the territories are known in English.

Buenos Aires also reaffirmed Argentina's claim to the territories, describing them as part of its national territory and “illegally occupied by the United Kingdom.”

The clash centres on Britain's support for economic activity in the islands and Argentina's efforts to prevent companies from exploiting natural resources in waters it considers part of its continental shelf. Its new guide, Doing business with the Falkland Islands, seeks to reassure companies operating or seeking to invest there.

The dispute has intensified in recent weeks amid developments related to the ‘Sea Lion’ oil project in the North Malvinas Basin, developed by Israel's Navitas Petroleum and British company Rockhopper Exploration.

The UK Government said in its guidance it “supports all legitimate economic activity in the Falkland Islands” and welcomes “continued private-sector interest and involvement in the Islands.”

It underlined that Argentina “does not exercise sovereignty or jurisdiction over the Falkland Islands” and that “Argentine domestic law does not apply within the Islands.”

The British guidance specifically backs the development of the islands' natural resources, including hydrocarbons, saying decisions on their development are matters for the Falkland Islands Government and the commercial companies involved.

In recent weeks, Argentina has stepped up measures against companies and individuals linked to activities around the islands. The Foreign Ministry said it had sent nearly 180 warning and risk-assumption notices to individuals and companies in 30 countries thus far, opened 60 administrative proceedings and filed three criminal complaints covering 10 companies and their directors.

Argentina says it will apply National Laws 26,659 and 26,915, together with Decree 868/2026, to companies, investors and suppliers directly or indirectly involved in hydrocarbon activities that it considers unauthorised on the Argentine Continental Shelf.

The British government, meanwhile, said companies receiving correspondence or threats of legal action from Argentine authorities should seek independent legal advice. It also said it could make its position clear directly to companies facing pressure in a third country over legitimate and lawful business linked to the islands.

Britain maintains that the Falkland Islands are a British Overseas Territory and says it has “no doubt” about the United Kingdom's sovereignty over the islands and surrounding maritime areas.

“We will not discuss sovereignty unless and until the Islanders so wish,” its guidance says, adding that the British government supports “the Falkland Islanders’ right of self-determination.”

Argentina, while rejecting the British document, said it remained prepared for a “constructive and substantive dialogue” with the UK aimed at resuming bilateral negotiations over sovereignty of the disputed territory.

The Malvinas Islands have been administered by Britain since 1833, apart from their occupation by Argentina during the 1982 war. Buenos Aires has continued to claim sovereignty over the islands.