Argentina Suspends Israeli Embassy Relocation Plan
Media broke the story, with coverage amplified by Israeli, linking the suspension to controversial petroleum exploration near the Falkland Islands by Israeli-owned energy firm Navitas Petroleum. The company anticipates launching offshore operations in 2028.
The Falkland Islands remain under British administration as an overseas territory, though Argentina maintains longstanding sovereignty claims over the archipelago, which it designates as the Islas Malvinas.
Last December, Argentina issued sharp condemnation of Navitas and UK-based Rockhopper Exploration following their announcement of an approximately $2.1 billion offshore oil venture near the disputed islands that Buenos Aires characterized as illegitimate.
Argentina argued the project lacked its approval and therefore constituted a "unilateral decision" by the British government.
Regulatory barriers have blocked both firms from Argentine operations for years—Rockhopper has faced criminalized status since 2013, while Navitas was prohibited in 2022 for drilling without authorization.
A 1976 UN resolution mandates that neither Argentina nor Britain should take unilateral actions over the territory while sovereignty negotiations continue.
Israeli Foreign Minister Gideon Saar has attempted to defuse tensions by assuring Argentine counterparts that Israel bears no responsibility for Navitas' operations and exercises no control over the publicly traded corporation, media reported.
Those diplomatic overtures have proven insufficient. The broadcaster cited sources close to Milei as saying the dispute has effectively halted the embassy relocation and could also damage bilateral relations.
Israel's Foreign Ministry has previously described Argentina as one of its closest allies under Milei and has said the two countries remain in close and continuous contact.
Milei first announced plans to move the embassy from Tel Aviv to Jerusalem during a visit to Israel in February 2024 and reiterated in November that the new mission was to be inaugurated in the spring. Israel has been trying to convince governments to transfer their missions from Tel Aviv to Jerusalem. If Argentina were to proceed, it would become the ninth country to do so, joining the US, Guatemala, Honduras, Paraguay, Fiji, Samoa, Kosovo and Papua New Guinea.
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