Argentina will file criminal charges against Israeli company Navitas Petroleum and its senior executives over the Falkland Islands' first commercial oil drilling project, escalating President Javier Milei's sovereignty claim. Foreign Minister Pablo Quirno announced the case Monday, targeting Navitas' 65% stake in the $2.2bn Sea Lion offshore project, set for production in 2028. Milei's government stated the project violates Argentine law banning resource exploitation without Buenos Aires approval, calling it a "clear and urgent danger" to national sovereignty. The complaint will likely be filed in a Buenos Aires federal court, though jurisdiction remains unspecified. Tel Aviv-listed Navitas has not commented.

The move marks a sharp nationalist turn from Milei, who previously sought warmer UK relations and praised Margaret Thatcher. Analysts link the escalation to Milei's flagging popularity amid economic stagnation and next year's presidential election against Peronist opposition. Milei cited "winds of change" following ally Donald Trump's review of US neutrality on the dispute, while Israel's Itamar Ben-Gvir urged Benjamin Netanyahu to recognize Argentine sovereignty over the "Malvinas." Navitas, sanctioned by Argentina since 2021, maintains with partner Rockhopper Exploration that recent developments won't materially affect the project timeline. Milei pledged broader sanctions against all involved companies and suppliers.