US targets Myanmar's state oil and gas enterprise with sanctions
THE United States on Tuesday (Oct 31) will impose a form of sanctions on Myanma Oil and Gas Enterprise (Moge), according to a statement seen by Reuters, but will hold back from imposing full blocking sanctions on the ruling junta’s main source of foreign revenue.
The action will prohibit certain financial services by Americans to the state oil and gas enterprise starting on Dec 15, in the first direct action against the state-owned enterprise. Washington has previously targeted its leadership.
Financial services include loans, accounts, insurance, investments, among others.
Washington will also slap sanctions on three entities and five people the US Treasury Department said were connected to Myanmar’s military, according to the statement.
The move “seeks to degrade the regime’s ability to purchase weapons to carry out atrocities against the people”.
Myanmar has been in crisis since the military launched a coup in 2021 and embarked on a deadly crackdown that gave rise to a nationwide resistance movement that won the backing of several ethnic minority armies.
A NEWSLETTER FOR YOU
Friday, 8.30 am
Asean Business
Business insights centering on South-east Asia's fast-growing economies.
Rights groups and United Nations (UN) experts have accused the military of committing atrocities against civilians in its efforts to crush the resistance. The junta says it is fighting “terrorists” and has ignored international calls to cease hostilities.
The UN human rights expert for Myanmar in September called on the US to further tighten sanctions on the country’s military rulers to include the state oil and gas enterprise.
Human rights advocates have repeatedly called for sanctions on Moge, but Washington had so far held back.
Washington in June issued sanctions against state-owned Myanmar Foreign Trade Bank and Myanma Investment and Commercial Bank. Despite the move, the junta could still use foreign currency to buy jet fuel, parts for small arms production, and other supplies.
Myanmar military officials have played down the impact of sanctions.
Moge provides hundreds of millions of dollars each year to the junta, according to the Treasury statement, and Tuesday’s move “seeks to further restrict the regime’s access to US dollars, which it uses to procure weapons and other equipment from abroad”.
Washington will also impose sanctions on three entities it said have assisted the junta in importing arms, dual-use goods and other materials, including from Russian entities under US sanctions.
Sky Royal Hero Company, a Myanmar entity that the Treasury said contracted repair work from sanctioned Russian entities and has a relationship with a Myanmar defence procurement company already subject to US measures, was among those targeted.
Five officials, including the chief of general staff for Myanmar’s army, navy and air force, were also targeted. REUTERS
Share with us your feedback on BT's products and services
