Milei ally defends investment in company operating in the Falklands

Argentine businessman Eduardo Elsztain has defended his investment in a company operating in the Falklands, saying it was intended as an attempt to build closer ties with the islands amid the sovereignty dispute between Argentina and the United Kingdom.

Elsztain, who leads Grupo IRSA and Banco Hipotecario and is regarded as close to President Javier Milei, confirmed that he owns a roughly 2% stake in FIH Group, formerly known as the Falkland Islands Company. He explained the investment in an open letter published by La Nación.

“The idea, which coincides with our country’s diplomatic strategy for decades, was to strengthen social, economic, cultural and productive ties with the Falkland Islands through an Argentine company that could help with the sovereignty claim,” he wrote.

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The idea, which coincides with our country’s diplomatic strategy for decades, was to strengthen social, economic, cultural and productive ties with the Falkland Islands through an Argentine company that could help with the sovereignty claim.

Elsztain said he began buying shares in the company on the stock market in 2005. He described FIH as strategically and economically important because it is involved in real estate, agriculture and hotels. In 2017, he made an offer to take control, arguing that the cause could encourage other Argentine businesspeople and citizens to support a different relationship with the islands through economic and social development.

British authorities blocked and rejected that offer. Elsztain said his company could retain only the minority stake it had acquired on the market, while most of the company ended up with Staunton Holdings Ltd. His defense came days after Milei said Argentina would accelerate and tighten sanctions on companies, executives, shareholders and suppliers operating in the Falklands without Argentine authorization.

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Thinking that I could have contributed something from my role as a businessman on this issue was worthwhile, even though it failed. If I could, I would not hesitate to try again, and who knows, perhaps it will happen again.