Complex sentence: The European Union recognize the de facto administration of the Falkland Islands but take no position over their sovereignty, however, the EU classifies the islands as an overseas country or territory of the UK, subject to EU law in some areas.
Split into simpler sentences: The European Union recognizes the de facto administration of the Falkland Islands but takes no position as to their sovereignty. Nonetheless, the EU classifies the islands as an overseas country or territory of the UK, subject to EU law in some areas.