Malvinas: UK vows to “protect” companies exploiting the islands’ resources

The British government announced on Tuesday that it would amend its legislation to “protect” companies and individuals involved in oil drilling in Malvinas. The decision came only hours after Javier Milei’s government announced it had filed a case with the International Tribunal for the Law of the Sea in Hamburg over resource exploitation in the Malvinas Islands.

“The UK won’t hesitate to protect UK businesses and individuals,” the official statement begins. The aim is to protect British companies “from pressure to comply with Argentine domestic measures and ensure that UK persons and companies engaged in lawful activity around the Falkland Islands can and will continue to make commercial decisions in accordance with UK law. ” 

The statement specifically targets actions that could affect British oil company Rockhopper, which, together with Israel’s Navitas, is developing the Sea Lion project in waters north of the islands.

“The UK supports the right of the Falkland Islanders to develop their natural resources for their own economic benefit,” the statement adds. “Decisions on economic development in the Falkland Islands are matters for the Falkland Islands Government and the companies involved.”

The British government also said that is “engaging closely” with the affected companies to offer support.

The statement also says that “the government is preparing measures under the Protection of Trading Interests (PTI) legislation,” emphasizing that the United Kingdom will “not hesitate” to protect British companies and individuals. 

The Protection of Trading Interests (PTI) Act is a 1980 UK law designed to protect British individuals and companies from foreign laws, court rulings and requirements with extraterritorial reach that affect the United Kingdom’s commercial interests. It has already been invoked in cases involving US sanctions against Cuba and Iran that affected British commercial interests. The law allows companies to refuse to comply with potential sanctions and to seek compensation when they are harmed by such measures.

“This makes it clear in no uncertain terms that this Government will act where Argentina seeks to impede lawful UK commercial activity,” said Business and Trade Secretary Jonathan Reynolds. 

Foreign Secretary Ed Miliband, meanwhile, stated that the United Kingdom’s support for the Malvinas Islands is ”steadfast.”

In strongly worded language, his statement declares that Argentina’s attempts to “intimidate” businesses and individuals engaged in legitimate commercial activities are “unacceptable.” It further states that “companies should be free to make lawful commercial decisions without the threat of political coercion.” 

The statement also warns that the British government will “always stand up for the Islanders, their right to determine their own future, and their right to pursue legitimate economic development.”

Editorial disclaimer: Although the UK refers to the Malvinas territory as the “Falklands Islands,” Argentina strongly contests this name. The Buenos Aires Herald refers to the islands as the Malvinas Islands.