UK Backs Falklands Business After Milei's Sanctions Warning

Britain has moved to reassure companies engaged in business in the Falkland Islands after Argentine President Javier Milei threatened sanctions against firms tied to economic activity in the British overseas territory.

In guidance posted on the government website less than two weeks after Milei's warning, London said it supports all legitimate economic activity in the islands and backs the right of Falkland Islanders to regulate their own economy and develop their natural resources, including hydrocarbons.

Milei had said he would tighten measures against companies operating in or connected with the islands, intensifying pressure on businesses as Argentina pursues its long-standing sovereignty claim.

The guidance states that Argentina has no right to exercise jurisdiction over the Falkland Islands or to apply its domestic law within them, nor towards any companies or individuals doing business in or connected with the islands. It added that Britain sees no legal basis for courts outside Argentina to enforce measures taken against such businesses.

Britain noted that earlier Argentine measures had been in place for many years without preventing the islanders from building a successful economy, and said it would keep supporting the islands and make its position clear to Argentina.

The development follows suggestions by U.S. President Donald Trump that Washington could reconsider its traditionally neutral stance on the Falklands dispute. Since then, Argentina has stepped up efforts to target companies involved in oil drilling around the islands.

Argentina's Foreign Ministry did not immediately respond to a request for comment.