On Monday, the European Council said the brand new lists cover 22 people, including government ministers in addition to senior members of Myanmar’s armed forces. It also targets 4 entities, including state-owned enterprises reminiscent of Myanma Oil and Gas Enterprise (MOGE), which it said provide “significant resources” to the regime.
Myanmar’s oil and gas sector has recently grow to be the goal of international pressure since it is considered one of the junta’s most vital sources of revenue and foreign exchange, provided that oil products are priced in US dollars.
Myanmar army landmines on oil and gas pipelines near China ‘more likely to backfire’
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MOGE is the operator and regulator of the oil and gas sector, overseeing the exploration and distribution of petroleum products. It also authorizes and collects tax on profits made by private corporations participating in production-sharing agreements or joint ventures.
“MOGE is subsequently controlled by and generates revenue for the Tatmadaw, thereby contributing to its ability to conduct activities that undermine democracy and the rule of law in Burma,” the European Union said in an update of its laws, referring to the armed forces: its official name.
About 50 percent of Myanmar’s foreign currency comes from natural gas revenues, and MOGE will earn $1.5 billion from offshore and pipeline projects in 2021-2022, in line with the Myanmar government. Previous rounds of US and European sanctions on Myanmar excluded oil and gas.
Zaw Min Tun, a spokesman for the military regime, rejected the EU measures, saying they’d have little impact on a sector that had survived under sanctions for years.
“When it comes to sanctions, there are companies that strictly follow them, but there are also companies that neglect them,” he said by phone. “But there is one thing: we will probably encounter some difficulties in banking transactions, so we need to address some banking issues to a greater or lesser extent.”
The sanctions were imposed after TotalEnergys SE and Chevron Corp said last month they’d withdraw from Myanmar to protest the junta’s violence against civilians for the reason that coup. Both corporations have operated in Myanmar for a long time under production-sharing agreements or joint ventures with MOGE and have faced criticism for doing business with the federal government.
Japanese brewing giant Kirin is withdrawing from Myanmar amid conflict for the reason that coup
Japanese brewing giant Kirin is withdrawing from Myanmar amid conflict for the reason that coup
“History shows that when the junta previously ruled in the 1990s, gas revenues from Total and Chevron/Unocal helped them withstand international sanctions as their reserves dwindled,” a gaggle of U.S. senators advised Treasury Secretary Janet Yellen and to Secretary of State Antony Blinken in a letter last 12 months.
Last week, Japanese trading company Mitsubishi Corp followed suit, planning to sell its shares in natural gas fields in Myanmar. While some corporations are leaving, others are planning to extend their involvement.
Earlier this month, a junta spokesman said PTT Pcl, a Thai state-controlled energy company, was bidding to take control of the Yadana gas field in Myanmar, and PTT Exploration and Production Pcl was offering to accumulate a combined 59.5% of the shares held by TotalEnergys and Chevron.
Zaw Min Tun said there are other foreign corporations which can be ready to switch those which can be exiting the oil and gas sector. “We have them ready, but at this stage I cannot give the names of the businesses,” he added.
The United States recently imposed sanctions on Myanmar government officials and businessmen, in addition to a personal logistics company and a military-run procurement agency to mark one 12 months for the reason that coup, even though it has not yet imposed any sanctions on MOGE.
The EU’s restrictive measures against Burma currently apply to a complete of 65 individuals and 10 entities and include an asset freeze and a prohibition on making funds available to the named individuals and entities.
