(Bloomberg) — In a significant move to limit the Myanmar military regime’s access to funds for purchasing weapons, the US has imposed sanctions on Myanma Oil and Gas Enterprise (MOGE), the junta’s most profitable state-owned enterprise.
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Effective from December 15, the US Department of Treasury’s Office of Foreign Assets Control has prohibited Americans from providing, exporting, or re-exporting financial services, directly or indirectly, to MOGE.
Secretary of State Antony Blinken stated, “MOGE contributes hundreds of millions of dollars to the military regime’s coffers annually, which it utilizes to buy weapons and military equipment overseas. By imposing financial services restrictions on MOGE, the United States aims to disrupt the regime’s access to the US financial system and hinder their ability to commit atrocities.”
No comments were received from Major General Zaw Min Tun, the lead spokesman for the ruling State Administration Council.
These sanctions, long demanded by rights groups and opponents of the military in Myanmar since the coup three years ago, follow escalating violence as ethnic armed groups intensify attacks on a regime that seems to be losing ground.
Blinken also announced the designation of three entities and five individuals who have supported the regime’s human rights abuses and confirmed coordination with Canada and the United Kingdom in aligning the sanctions.
He added, “Today’s designations close off avenues for evading sanctions and strengthen our efforts to hold the regime accountable for their atrocities.”
Back in March, Bloomberg News reported that the US was considering sanctions on MOGE when companies from ally nations such as Thailand and South Korea were involved in energy projects in Myanmar. There were concerns that imposing sanctions could open the door for China to increase its economic influence on Myanmar.
Yadanar Maung, spokeswoman for Justice for Myanmar, insisted, “The US should continue targeting the junta’s revenue sources by applying comprehensive sanctions on MOGE, freezing its assets, and blocking all trade, including support from international oil field service companies that contribute to funding atrocities.”
MOGE’s most valuable assets include the Yadana field, operated by Thailand’s PTT Exploration & Production Pcl, in which Chevron Corp. had a stake previously. Myanmar’s gas supplies accounted for 16% of Thailand’s total natural gas supply, comprising over half of the country’s power generation mix, according to the Thai Ministry of Energy.
–With assistance from Khine Lin Kyaw and Chanyaporn Chanjaroen.
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