Milei administration sends Malvinas sovereignty defence bill to Congress

Argentina’s government has sent Congress its much-anticipated National Sovereignty Defence Bill, a proposal that would toughen sanctions against individuals and companies that exploit natural resources in and around the Malvinas (Falkland) Islands without previous Argentine authorisation.

The bill was submitted to the Chamber of Deputies and establishes a regime covering activities involving renewable and non-renewable resources in the archipelago and nearby South Georgia and the South Sandwich Islands, as well as the surrounding maritime and island areas. It was signed by President Javier Milei, Cabinet Chief Diego Santilli, and ministers Pablo Quirno, Carlos Presti and Luis Caputo.

One of the main changes is to replace the sanctions regime in force since 2011, which focused on hydrocarbon activities, with a system covering different forms of natural-resource exploitation. 

Individuals or companies carrying out prohibited activities could face fines equivalent to between 4,000 and 500,000 barrels of oil, as well as the suspension or cancellation of permits.

The bill also establishes disqualifications lasting between five and 20 years and provides for tougher penalties when activities involve the exploration or exploitation of non-renewable natural resources.

Prioritise

Milei, who said the bill would “protect the sovereign rights of the Argentine Republic,” is seeking swift approval. In a statement, he called on “all political leaders to pause other debates” and give the initiative “the highest priority and speed” in its consideration.

In a statement, the President’s Office argued that Argentina needs “a comprehensive and coordinated regulatory framework” to defend its sovereignty and strengthen its institutional capabilities in the face of current threats. It said measures implemented to date had been “insufficient and ineffective.”

“We cannot afford to allow those who usurp our territory to avoid working together on the recovery of our Malvinas Islands, which are and will remain Argentine,” said the President. 

The Casa Rosada said the initiative rests on three pillars: punishing those who exploit natural resources illegitimately, creating incentives for such activities to cease, and providing the state with tools to respond to external threats.

The bill also proposes repealing the regime established by Law No. 26,659, passed in 2011, and replacing it with a tougher framework.

It would increase criminal penalties for those conducting business illegitimately in territory claimed by Argentina, as well as for their shareholders and suppliers.

The initiative also establishes a National Security System, to be overseen by a National Security Council. The body would be responsible for coordinating diplomatic, economic, defence, legal and intelligence functions, as well as protecting critical infrastructure and national sovereignty.

The initiative also establishes procedures for responding to aircraft deemed hostile and provides for various measures to be taken in maritime, river and lake environments.

In the case of vessels, the bill provides for measures ranging from warnings and manoeuvres to intercept them to warning shots and disabling action, once less harmful alternatives have been exhausted.

Sinking a vessel would be reserved as an exceptional military measure against a hostile ship and would require presidential authorisation. The bill prohibits using such action against civilian vessels as a sanction or policing mechanism.

Key points from the draft National Sovereignty Defence Bil

The National Sovereignty Defence Bill would establish a new regime for sanctioning the unauthorised exploitation of resources on the Malvinas Islands and on the Argentine Continental Shelf. The bill would also create a National Security Council and regulates state action in response to external threats.

The initiative amends the National Defence Law, introduces measures to protect Argentine airspace and maritime territory, tightens rules against foreign influence in Argentine politics and gives legal status to the Public Register of Individuals and Entities Linked to Acts of Terrorism and its Financing (RePET).

1. Tougher penalties. Current Law 26,659 would be replaced and prohibition and punishments would be expanded. They would no longer apply solely to hydrocarbons but to any unauthorised exploitation by Argentina of renewable and non-renewable natural resources on the Malvinas Islands, their maritime and island areas and the Continental Shelf. Suppliers, partners, shareholders and controlling parties of the companies involved could also be covered. The proposed penalties include prison sentences of up to 20 years, as well as fines and disqualifications.

2. Sanctioned companies barred from operating in Argentina. Disqualification would prohibit companies from conducting economic activities in the country, revoke licences, end tax or social-security benefits and terminate contracts. There would also be a public register of offenders, with the state and private individuals prohibited from contracting with those listed. The bill also introduces trials in absentia for offences covered by the new law.

3. Creation of a National Security Council. This would be headed by the President and permanently include the Cabinet Chief, the ministers of Foreign Affairs, Defence and Economy, the State Intelligence Secretariat (SIDE) and the Secretariat of Legal and Technical Affairs. It would be responsible for the strategic coordination of diplomatic, economic, military, legal, cyber and intelligence affairs, as well as involvement in the protection of critical infrastructure.

4. Use of force to protect airspace and maritime territory. In the case of an aircraft deemed hostile, the bill establishes a sequence ranging from identification and warnings to a show of force and, as a last resort, the use of force by express order of the President, who could delegate that authority to the Defence Minister. For vessels, it provides for a series of measures including pursuit, inspection, warning shots and disabling action. Sinking would be exceptional and require presidential authorisation, and would be prohibited as a sanction against a civilian vessel or simply to prevent it from escaping.

5. Measures against states or foreign actors that threaten national security. The National Security Council could order urgent measures in response to a serious and imminent threat, including restrictions on foreign-exchange and financial operations, the temporary freezing of funds and assets, the suspension of authorisations or contracts, restrictions on imports and exports, and temporary increases in customs duties. Such measures would have to be justified, be subject to a defined time limit and cease once the circumstances that prompted them had disappeared.

6. New offences and restrictions on foreign influence. Foreign nationals without permanent residency and foreign legal entities would be prohibited from making contributions to political parties and election campaigns. The bill would also introduce offences for revealing secrets to foreign states or intelligence services, materially assisting clandestine intelligence operations, and carrying out – on behalf of or with foreign funding – actions aimed at altering electoral processes or manipulating public opinion through coordinated mass disinformation campaigns, as well as promoting or financing acts of violence or sabotage. The bill also completes the framework with a redefinition of National Defence in response to external threats from both state and non-state actors, and incorporates the RePET into law. The register provides for the freezing of assets and a ban on economic or financial transactions with individuals and entities listed because of their links to terrorism or its financing.

– TIMES/PERFIL