Argentina Threatens Sanctions on Israeli Investors Over Falklands Oil Exploration

Argentine President Javier Milei is targeting companies, including those with significant Israeli investment, involved in oil exploration in waters off the Falkland Islands, a move that could lead to sanctions. Milei, a declared ally of Israel, specifically mentioned the Sea Lion offshore oil project on Thursday, announcing measures against firms engaged in oil and gas activities in the British-controlled islands. The potential sanctions could extend to shareholders, directors, and suppliers.

Two companies linked to the Sea Lion project have strong ties to Israel. Navitas Petroleum, listed on the Tel Aviv Stock Exchange, operates the project and holds a 65% stake. Gideon Tadmor, a prominent figure in Israel's energy sector and chairman of Navitas, owns about 9% of the company's shares. The remaining 35% of the Sea Lion project is owned by Rockhopper Exploration, listed on the London Stock Exchange. Among its top five investors are Israeli-based companies Novked Capital, Prosh Funds, and Eyon Fund Management, each holding between 4.6% and 9.2%.

Both Navitas and Rockhopper stated that the project holds valid licenses and they do not anticipate Milei's statements will significantly impact the project's development. However, a December 2025 statement from the Argentine Embassy in the UK indicated that both companies were already banned from operating in Argentina for 20 years due to obtaining licenses Buenos Aires deems illegal.

Milei met with Israeli Prime Minister Benjamin Netanyahu in April, signing bilateral cooperation agreements, including in aviation and "Isaac Agreements" aimed at strengthening ties between Israel and Argentina, inspired by the Abraham Accords. Israeli officials have not yet commented on Milei's sanctions threat, with Friday being a weekend holiday in Israel. Argentina's Foreign Minister Pablo Cernik stated the move would not cause a diplomatic rift with Israel.