US Eases Sanctions on Myanmar Junta Associates Amidst Rights Concerns

The United States has controversially lifted sanctions on several companies and individuals linked to Myanmar’s ruling military junta, drawing sharp criticism from human rights organizations and politicians who fear it undermines accountability efforts.

Sanctions Rollback Sparks Outcry

The US Treasury announced the removal of sanctions against entities like KT Services & Logistics and its founder, Jonathan Myo Kyaw Thaung, previously penalized for leasing port facilities from a military-owned firm. Other delisted companies include Myanmar Chemical and Machinery Company and Suntac Technologies, both sanctioned for their role in producing arms such as tanks and mortars.

The US has lifted sanctions on several associates of Myanmar’s ruling generals and their military-linked companies, a move that has prompted concern from politicians and rights groups.

— World Today News (@WorldTodayNews) July 26, 2023

A US Treasury spokesperson stated the removals were part of a “standard course of business,” without elaborating on specific reasons. However, critics argue this decision weakens the pressure on the junta, which seized power in a 2021 coup.

Junta’s Brutal Campaign Continues

The sanctions rollback occurs as Myanmar’s military intensifies its violent crackdown on civilians. Reports indicate that a junta airstrike in May targeted a school in the Sagaing region, resulting in the deaths of 20 students and two teachers, despite a declared ceasefire. Another airstrike in July allegedly killed over 20 displaced individuals, including children, sheltering at a monastery.

Amnesty International data reveals the military continues to import aviation fuel, enabling continued lethal air operations. Human Rights Watch’s Asia advocacy director, John Sifton, described the decision as “extremely worrying,” suggesting a potential weakening of US sanctions enforcement.

Financial Levers Remain Crucial

Analyst Sean Turnell emphasized that individuals facilitating the junta’s arms imports, particularly from China and Russia, are not minor figures. “These are people who are closely tied to Myanmar’s war economy,” he noted. “Lifting sanctions on them sends the wrong message.”

The US maintains sanctions on junta chief Min Aung Hlaing and two state-owned banks. However, the removal of others involved in the military’s procurement network could hinder efforts to restrict the regime’s access to foreign currency, essential for its weapons purchases. According to the US Congress Research Service, as of December 2022, the Myanmar military’s control over state revenue streams remains significant, despite international sanctions (Source: Congressional Research Service, “Myanmar: U.S. Sanctions and U.S. Policy,” December 1, 2022).

US Representative Ami Bera criticized the move, stating it “goes against our values of freedom and democracy.” Despite such concerns, the White House maintains the delistings occurred in the ordinary course of business. Financial sanctions remain a critical tool, as Myanmar’s military relies on foreign currency, often acquired through transactions in dollars or euros, for its military operations.