MercoPress. South Atlantic News Agency

Oil legislation to obstrut Falklands’ industry, a ‘boomerang’ for Argentine companies says FCO

Argentine president Cristina Fernandez de Kirchner

For the Foreign Office the bill approved this week by the Argentine congress that proscribes fines and sanctions for companies or persons involved in support of the oil industry in the Falkland Islands is a ‘boomerang’’ that will only harm Argentine companies, reports Buenos Aires daily La Nacion in its Friday edition.

“We are well aware that Argentine legislation does not apply to the Falklands, South Georgia and South Sandwich islands” said a Foreign Office official quoted by La Nacion, adding that the UK is closely following the package of measures been implemented by Argentina.

Far from forcing the UK to sit at a negotiations table, “this kind of legislation only achieves that Argentine companies are inhibited from taking advantage of the development opportunities in the Falklands’ hydrocarbons industry”, continued the FCO official.

La Nacion admits that several Argentine lawmakers believe the bill will force the UK to the sovereignty discussions table but also points out that the passing of the bill virtually went unreported in the London press more absorbed by the crisis in Japan and the Middle East. Only the Daily Telegraph published a piece anticipating President Cristina Fernandez de Kirchner would make the dispute “one of the main issues of her electoral campaign for the October presidential election”.

The article also mentions that the Argentine legation in London does not have an ambassador since Federico Mirré left in 2008 and affairs are in the hands of business attaché Osvaldo Mársico.

When the Argentine congress voted the bill, the British embassy spokesperson in Buenos Aires said that exploration for oil in Falklands’ waters with licences awarded by the Falklands’ government was “legitimate” and that the UK fully supports the Islands right and efforts to develop its own oil and gas industry.