Milei vows tougher sanctions, defense push over Falklands oil drilling

BUENOS AIRES, Sept 3 (Reuters) - Argentine President Javier Milei said on Thursday he would tighten sanctions on companies involved in oil projects around the Falkland Islands, boost defense resources in the country's south and send Congress a bill aimed at strengthening Argentina's response to what he called violations of its sovereignty.

In a televised address, Milei said he would sign a decree to speed sanctions under Argentine law against companies participating in oil and gas extraction in territory Argentina considers its own but that remains under British control.

• He said Argentina would boost efforts to levy penalties not only against the companies involved, but also against their shareholders, directors and suppliers.

• "We will continue to bar from operating in Argentine territory companies involved, directly or indirectly, in projects in the (islands) without Argentine authorization," Milei said.

• He also said the government would issue an emergency decree to expand defense resources to build a naval base in the nearby Tierra del Fuego province and strengthen telecommunications capabilities.

• Milei added that he would send Congress an urgent "national sovereignty defense" bill to toughen penalties for unauthorized operations around the islands, extend sanctions to suppliers and broaden the legal framework to cover other activities affecting Argentina's natural resources.

• Milei said Argentina had determined that the Sea Lion offshore project, operated by Navitas Petroleum and Rockhopper Exploration, could begin oil development in the coming months, creating what he described as an urgent threat to Argentine interests. The two firms did not immediately respond to requests for comment.

• The remarks signal a tougher tone from Milei, who had previously called for pursuing the Falklands dispute through diplomacy even as he sought warmer ties with Britain.

• The Falklands, a British overseas territory about 500 km (300 miles) east of the Argentine mainland, have long been claimed by Argentina. Britain has controlled the islands since 1833, and the two countries fought a brief war over them in 1982.

(Reporting by Nicolas Misculin and Kylie Madry; Editing by Jacqueline Wong)