US Imposes Sanctions On Myanmar’s State-Owned Oil And Gas Enterprise

1-11-2023 (YANGON) The United States has taken a significant step in restricting the military regime’s access to funds for purchasing weapons by imposing sanctions on Myanmar’s most profitable state-owned enterprise. The move by Washington targets Myanma Oil and Gas Enterprise (MOGE) and prevents Americans from providing financial services, directly or indirectly, to the company. The sanctions will be effective from December 15, as announced by the Department of Treasury’s Office of Foreign Assets Control.

Secretary of State Antony Blinken stated that MOGE contributes hundreds of millions of dollars annually to the military regime’s coffers. These funds are then used by the regime to procure weapons and military equipment from abroad. The US aims to disrupt the regime’s access to the American financial system and limit its ability to carry out atrocities by issuing a financial services directive against MOGE.

Maj Gen Zaw Min Tun, the lead spokesman for the ruling State Administration Council, did not respond to requests for comment.

Rights groups and opponents of the military in Myanmar have repeatedly called for sanctions against MOGE since the regime seized power in a coup almost three years ago. During this time, violence has escalated as ethnic armed groups intensify their attacks, posing a challenge to the regime’s control over the country’s 55 million people.

In addition to the sanctions on MOGE, the US is also designating three entities and five individuals who have supported the regime’s human rights abuses. Furthermore, the US is coordinating with Canada and the United Kingdom to align their sanctions.

Antony Blinken emphasized that these designations aim to close avenues for sanctions evasion and strengthen efforts to hold the regime accountable for its atrocities.

In March, Bloomberg News reported that the US was considering sanctions on MOGE while companies from allied countries such as Thailand and South Korea had interests in energy projects in Myanmar. The US was concerned that imposing sanctions could lead to China exerting greater economic influence on Myanmar and filling the void left by other countries, according to sources familiar with the matter.

Yadanar Maung, a spokeswoman for Justice for Myanmar, called for comprehensive sanctions on MOGE, including freezing its assets and blocking all trade, including that of international oil field service companies. She believes that such measures are necessary to target the junta’s revenue sources and put an end to the financing of atrocities.

Among MOGE’s prized assets is the Yadana field, which is operated by Thailand’s PTT Exploration & Production Pcl. Chevron Corp previously held a stake in the field. Myanmar’s imports accounted for 16% of Thailand’s total natural gas supply last year, making up over half of the country’s power generation mix, according to the Thai Ministry of Energy.