US Treasury Cracks Down on Financial Services with Myanma Oil and Gas Enterprise

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced new sanctions against Myanma Oil and Gas Enterprise (MOGE) in an effort to limit the regime’s ability to purchase weapons and carry out atrocities in Burma. The sanctions prohibit certain financial services by US persons to or for the benefit of MOGE. In addition, OFAC has designated three entities and five individuals connected to Burma’s military regime. These actions are part of a coordinated effort with Canada and the United Kingdom to combat the regime’s ongoing violence and human rights abuses.

Since the military coup in 2021, Burma’s military regime has committed numerous atrocities against civilians, including air strikes, suppression of pro-democracy movements, and displacement of millions of people. The sanctions target companies and individuals, including government officials and military cronies, who perpetuate or facilitate the regime’s brutal violence. The designated individuals and entities have also been sanctioned by the United Kingdom, Canada, or the European Union.

The MOGE Financial Services Directive, issued by OFAC, prohibits US persons from providing financial services to or for the benefit of MOGE or its property or interests in property. This directive aims to restrict the regime’s access to US dollars, which it uses to procure weapons and equipment. The directive will take effect on December 15, 2023.

MOGE is a state-owned enterprise in Burma involved in the extraction, production, and distribution of oil and gas. It administers large offshore oil and gas fields through joint ventures with foreign entities and is a significant source of revenue for the military regime.

In addition to the financial services directive, OFAC has designated three entities that have assisted the military regime in importing arms and other materials. Sky Royal Hero Company Limited, Suntac Technologies Company Limited, and Suntac International Trading Company Limited have all been designated for their involvement in the defense sector of the Burmese economy. These designations aim to disrupt the regime’s military supply chain and reduce its access to imported arms.

Furthermore, OFAC has designated five military regime officials, including Charlie Than, Kan Zaw, Swe Swe Aung, Zaw Min, and Maung Maung Aye. These individuals hold positions in the government and military and have been involved in the regime’s oppressive actions. The designations block their property and interests in the United States and prohibit US persons from engaging in transactions with them.

The US, Canada, and the United Kingdom are united in their commitment to holding the Burma military regime accountable for its violence and human rights abuses. These coordinated actions aim to degrade the regime’s ability to carry out atrocities and bring about positive change in Burma.