US Imposes Partial Sanctions on Myanmar’s Oil and Gas Enterprise

Akif Wani | October 31, 2023 | 09:54 PM IST | World | Follow on Google News

U.S. Imposes Partial Sanctions on Myanmar’s Oil and Gas Enterprise

The United States has taken a significant step in its response to the political crisis in Myanmar by imposing sanctions on the country’s Oil and Gas Enterprise (MOGE), the U.S. Treasury Department announced. While these sanctions fall short of complete blocking measures, they mark the first direct action against this key source of revenue for the ruling junta.

Restrictions on Financial Services for MOGE

Starting on December 15, certain financial services provided by Americans to MOGE will be prohibited, according to the Treasury Department. These services encompass loans, accounts, insurance, investments, and other financial activities. Although the enterprise has not been added to the Specially Designated Nationals list, which would sever its ties with the U.S. financial system and freeze its assets, this move significantly hampers its ability to engage with American financial institutions.

Multinational Sanctions Effort

In addition to the measures against MOGE, the U.S. also imposed sanctions on three entities and five individuals connected to Myanmar’s military. This coordinated action was taken in collaboration with the United Kingdom and Canada, signaling a united front against the junta.

These sanctions come as part of a broader effort to address the ongoing crisis in Myanmar. Since the 2021 military coup, the country has been in turmoil, with a nationwide resistance movement gaining momentum, backed by several ethnic minority armies. Human rights organizations and U.N. experts have accused the military of committing severe atrocities against civilians. The junta, however, continues to assert that it is combating “terrorists” and has disregarded international calls for a ceasefire.

This move by the U.S. Treasury Department is seen as a step towards accountability for the junta’s actions and the prevention of further violence. It aligns with previous calls from human rights advocates and U.N. experts to impose sanctions on MOGE. Notably, U.S. oil giant Chevron Corp had already begun to disengage from MOGE by selling its stake in an offshore gas joint venture. The impact of these sanctions remains a topic of discussion, with Myanmar military officials downplaying their effects.

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Akif Wani