MercoPress. South Atlantic News Agency

UK publishes guidance backing companies that do business with the Falkland Islands

London states it has no doubt about British sovereignty over the islands and surrounding waters, and that it will not discuss the question unless the islanders wish it

The British government published guidance on Tuesday for companies and individuals conducting economic activity in the Falkland Islands or supplying goods and services to the archipelago, offering assistance to those who receive correspondence or threats of legal action from the Argentine authorities.

The document was produced by the Foreign, Commonwealth and Development Office together with the department the publication itself identifies as the Department for Business, Innovation, Science and Trade, and comes nine days after Argentina filed a criminal complaint against five companies linked to the Sea Lion oil project.

Who it covers

The guidance applies to three categories: those operating in the islands, those supplying goods or services to them, and those involved directly or indirectly in developing the islands' economy, including the exploitation of natural resources.

What the UK government says

London states it has no doubt about British sovereignty over the islands and surrounding waters, and that it will not discuss the question unless the islanders wish it. It says the archipelago has been administered peacefully and effectively since 1833, apart from the 1982 interruption, and that Argentina exercises neither sovereignty nor jurisdiction there and its domestic law does not apply. It invokes the right of self-determination set out in Article 1 of the UN Charter and of the two 1966 international human rights covenants, and says hydrocarbon activity on the continental shelf is regulated under Falkland Islands legislation in accordance with the Law of the Sea Convention. These are UK government positions, contested by Argentina.

The practical point

The passage of greatest operational value states that the UK cannot see the basis on which courts of any country outside Argentina could legitimately exercise jurisdiction in respect of these measures. The document states expressly that it does not constitute legal advice and recommends that companies receiving Argentine correspondence obtain independent advice on their particular circumstances. It also offers to make its position clear directly to any company seeking reassurance, including subsidiaries and suppliers under pressure in third countries. The contact given is the FCDO's Overseas Territories and Polar Directorate, King Charles Street, London SW1A 2AH.

What the Argentine measures cover

Decree 868/2026, of September 4, designated Argentina's foreign ministry as the enforcement authority for Law 26,659, set ten business days for a defense and ten more for a ruling, and requires public bodies to report any potentially prohibited conduct within five business days. Restrictions may extend to direct and indirect shareholders, affiliated entities and certain suppliers, which explains why investment funds, banks and a shipping company appear among those targeted. Argentina has 60 administrative proceedings open, with no penalty applied, and filed a criminal complaint on September 7 under Article 7 of the law, which carries terms of five to ten years. None of the allegations has been proven.

Precedents

The guidance says previous Argentine measures did not prevent the islands' economy from growing, without specifying which. In 2012, Argentina barred Borders and Southern Petroleum, Desire Petroleum, Argos Resources and Falkland Oil and Gas for twenty years. In 2015, a prosecutor ordered the seizure of more than US$156 million in international equipment, including vessels, platforms and bank accounts.

The islands' Legislative Assembly welcomed the publication in a statement that largely reproduces the guidance's own wording. Argentina claims sovereignty over the islands; in the 2013 referendum, 99.8% of voters chose to retain the status of a British overseas territory.