Sept 17 (Reuters) - Argentina's government has presented a bill to crack down on companies operating in the Falkland Islands, potentially escalating tensions with the United Kingdom over the territory that is controlled by Britain but claimed by Argentina.
The proposal introduced on Thursday toughens sanctions on companies and people who unlawfully participate in activities in the Falklands and in Argentina's maritime spaces and continental shelf in "any type of activity aimed at the utilization of renewable
or non-renewable natural resources" without authorization from Argentine authorities.
It also creates a National Security Council, led by Argentina's president, to oversee national security policy and safeguard critical infrastructure and national sovereignty.
Its seven members will include the president's cabinet chief, foreign minister, defence minister, economy minister, secretary of national intelligence and the president's legal secretary.
The bill seeks to "punish those who exploit our natural resources illegally, create incentives for them to cease such conduct, and provide the national government with tools to protect itself against external threats," the president's office said in a statement on Thursday.
The new bill aims to revamp 2011 legislation with a tougher regime and stronger sanctions aimed at companies and their shareholders and suppliers, the statement added.
The Argentine government said last week it had opened sanctions proceedings against at least 60 companies and individuals linked to offshore oil exploration around the islands, which Argentina calls the Malvinas.
Argentina, which invaded the islands in 1982 and fought a 10-week war over them before surrendering to Britain, has accelerated efforts to crack down on companies involved in the Sea Lion oil project since earlier this month U.S. President Donald Trump suggested Washington could reconsider its traditionally neutral position on the Falklands dispute.
Trump's comments came amid his frustration at what he saw as Britain's limited support for U.S.-led military operations in the Middle East.
Centre and left-wing opponents have long accused Milei of not doing enough to defend Argentina's claim over the Malvinas and now say he is acting for political reasons ahead of a likely 2027 re-election bid.
The owners of the Sea Lion offshore project, Navitas Petroleum and Rockhopper Exploration, had said the oilfield project holds valid licenses from the Falkland Islands government and have indicated they do not expect Milei's actions to derail development.
(Reporting by Leila Miller, Lucinda Elliott and Aida Pelaez-Fernandez; Editing by Tomasz Janowski and Hugh Lawson)
