Milei-allied real-estate mogul defends his Malvinas investment

One of Argentina’s most influential business executives defended his investment strategy in the Malvinas (Falkland) Islands as President Javier Milei seeks to pressure companies to sever ties with the British territory. 

IRSA Inversiones y Representaciones SA Chief Executive Officer Eduardo Elsztain spoke up Sunday evening after seeing “conspiratorial and anti-Semitic theories” about his stake in FIH Group Plc, the parent of Falkland Islands Company, which operates a range of businesses there, from retail to construction to travel.

Elsztain’s Dolphin Fund Ltd has held about a two-percent stake in the British company for several years. But it’s drawn renewed scrutiny as Milei pressures businesses to take sides and revives tension over the South Atlantic territory in which the two nations fought a war in 1982. 

Over the weekend, Milei’s press office circulated statements from Halliburton Co SLB Ltd and Baker Hughes Holdings LLC confirming they have no operations in oil development off the islands, known in Argentina as the Malvinas and as the Falklands in the United Kingdom. 

“My grandfather Isaac always told me that if Argentina would have been economically involved in the life of the Malvinas Islands throughout the 20th century, the war probably would’ve been avoided,” Elsztain said in a LinkedIn post. The idea “was to deepen economic, cultural and industry ties to the Malvinas Islands through an Argentine company that could help in the claim of sovereignty.”

Argentine Foreign Minister Pablo Quirno also defended Elsztain after he was labelled a “traitor” on social media, taking a friendlier stance compared to the government’s harsh rhetoric toward other firms with business interests on the islands.  

With a sprawling real-estate empire, Elsztain has been one of Milei’s staunchest supporters in Argentina’s business community. One of his hotels in Buenos Aires served as Milei’s campaign headquarters in 2023 and he accompanied the libertarian on trips to Israel and New York to meet leaders of the Hasidic community.

On LinkedIn, Elsztain added that even former Argentine leader Juan Domingo Perón, the founder of the namesake movement that still dominates politics in the country today, tried to buy the Falkland Islands Company. 

Elsztain himself attempted to buy a majority stake, but British authorities refused to let an Argentine control the islands’ most important business. 

Milei is reviving the dispute as the start of offshore oil production draws near. Quirno has become an outspoken critic of the energy companies involved, tightening longstanding sanctions on firms there. For its part, British officials have reiterated that the islands belong to the UK. 

The timing is also serendipitous. Milei is drawing national attention to an issue that tends to unite Argentines across the political spectrum as economic progress falters and job losses pile up. Milei’s approval rating fell near its lowest level in July, according to AtlasIntel polling.

The World Cup in July also brought a renewed spotlight to Argentina’s claim of sovereignty over the islands. Argentina’s national football team defeated England in the semi-final, and some players celebrated by waving a banner on the field that read “the Malvinas are Argentine.”