Argentina Sanctions Israeli Bank Mizrahi Over Falklands Oil Project

Argentina's President Javier Milei administration has added Israeli bank Mizrahi Tefahot to its sanctions list due to its involvement in the development of the Sea Lion oil field off the Falkland Islands. The bank was included alongside 14 other entities and individuals connected to the project. This action follows earlier sanctions imposed by Argentina on Navitas, an Israeli company that holds the rights and operates the Sea Lion field. Mizrahi Tefahot's connection to the project, according to Argentine disclosures, is not through direct ownership of Navitas shares. Instead, the bank was sanctioned as a shareholder in Rockhopper, a British company partnered with Navitas on the Sea Lion project. Mizrahi Tefahot reportedly holds approximately 2.027 million shares in Rockhopper, representing about 0.24% of the company and valued at roughly $2 million. It remains unclear whether these shares are part of the bank's own investment portfolio or held on behalf of clients. Rockhopper owns 35% of Sea Lion, while Navitas holds the remaining 65% and manages operations. The project has progressed from planning to implementation and financing stages. Currently, this is an administrative procedure, and the sanctions have not yet taken effect. If finalized, the sanctions could prohibit sanctioned entities from operating in Argentina for 5 to 20 years, and Argentine state entities would be barred from conducting business with them.