The United States imposed sanctions on Wednesday against two of Myanmar’s largest regime-controlled banks and its ministry of defense. The Biden administration’s move is aimed at targeting revenue sources that support the military junta and its repressive actions against the people. (File photo by Diego Azubel/EPA-EFE)
June 22 (UPI) — In a bid to undermine the military junta and its ability to oppress the citizens of Myanmar, the United States Treasury imposed sanctions on Wednesday against Myanma Foreign Trade Bank, Myanma Investment and Commercial Bank, and the country’s defense ministry. These sanctions were imposed due to the banks’ facilitation of foreign market transactions for the military junta, as well as the defense ministry’s control over the armed forces that have been engaged in violent repression since seizing power in a coup earlier this year.
The U.S. Treasury statement highlighted the military regime’s exploitation of state-run access to international markets, including the importation of weapons and materials from sanctioned Russian entities. The regime’s actions have perpetuated violence and oppression in Myanmar, according to Under Secretary of the Treasury for Terrorism and Financial intelligence, Brian Nelson.
“Burma’s military regime has leveraged state-run access to international markets to import weapons and material, including from sanctioned Russian entities, to continue its violence and oppression,” Under Secretary of the Treasury for Terrorism and Financial intelligence Brain Nelson said in a statement, while referring to Myanmar by its other name.
Myanmar has been under military rule since the coup on February 1, 2021, which resulted in the overthrow of the civilian-led government and the imprisonment of its leaders, including Nobel Peace Prize laureate Aung San Suu Kyi.
The brutal crackdown on public opposition to the junta has led to numerous civilian casualties and human rights abuses. The junta has even resorted to aerial attacks, which Human Rights Watch condemned as a potential war crime. The Assistance Association for Political Prisoners, based in Thailand, has reported that the military has killed 3,685 people since the coup began.
The banks targeted by the Biden administration play a crucial role in converting Myanmar’s local currency, kyat, into U.S. dollars and euros. This allows junta-owned businesses to access international markets through offshore accounts and enables the sanctioned military entities to purchase arms and other materials from foreign nations.
The defense ministry, on the other hand, has been implicated in importing over $1 billion worth of goods and materials, including from sanctioned Russian sources, since the coup took place.
While civil society groups in Myanmar have long demanded the blacklisting of these banks and the imposition of similar sanctions on the country’s gas industry, the recent U.S. sanctions represent a significant step in the right direction. However, advocacy organization EarthRights International has called for further action, urging the United States to follow in the footsteps of the European Union, which sanctioned Myanma Oil and Gas Enterprise, the junta’s largest source of foreign currency.
“There is no ‘silver bullet’ that will end the ongoing atrocities in Myanmar, but a scattergun approach where the U.S. sanctions banks and the EU sanctions the gas sector leaves too many gaps,” emphasized Keith Slack, Director of Strategy and Campaigns at EarthRights International.
In response to the sanctions, Myanmar’s exiled opposition leader and acting President, Duwa Lashi La, expressed appreciation but also called for more extensive measures, including cutting off the junta’s access to foreign currency and blocking revenue flows from the oil and gas sector.
