The action includes blocking top military conglomerates and the ministries of defense and home affairs from certain types of trade. Â. Activist groups including Human Rights Watch have joined calls for Biden to target companies run by the military. The United States unveiled new measures on Thursday to punish Myanmar's army for its coup. “Existing projects may continue, but it’s the new ones which will be lost as companies go elsewhere,” said one Yangon-based investor. Those were slapped on in layers between September 1988 – after the military crackdown on a pro-democracy uprising that left 3,000 dead – until 2011, when former Myanmar president Thein Sein opened the door for long-time political prisoner Suu Kyi to play an official role in national politics. Obama, however, stopped short of removing Myanmar from supervision of sections 311 and 312 of the US Patriot Act, which deals with money laundering and terrorist financing and imposes stringent due diligence requirements on US financial institutions dealing with Myanmar or Myanmar-based companies. “Under the current circumstances, Telenor faces several dilemmas in Myanmar,” Telenor said in a press statement responding to the coup and sporadic closures of communication services. Under the order, the US government promises to develop “additional regulatory amendments to impose further export restrictions on the Burmese military to ensure that entities involved in dismantling of democratic norms and institutions do not have access to US technologies.”. Clyde & Co LLP is a limited liability partnership registered in England and Wales. Container Transport And Port Clearance Yard (Ywama) June 1, 2015. While the easing of US sanctions was significant, they were not deemed enough for US investors who continued mainly to stay away from Myanmar in the 2017-2020 period, due in part to the Rohingya refugee crisis and the NLD’s initial teething problems with competently running a government. The two conglomerates being targeted, Myanmar Economic Corporation and Myanmar Economic Holdings Limited, are also used by the military to control vast swathes of the country's economy, with holdings ranging from beer and cigarettes to tires, mining and real estate. Six Dr Seuss books withdrawn over racist imagery, Five Koreans die after AstraZeneca vaccination, Missile defenses did not stop rocket attack in Iraq, China's vaccine diplomacy falls flat in the Philippines, Biden, BlackRock and climate bubble trouble, Admiral touts plan to defeat China in the Indo-Pacific. New US sanctions are so far limited to give coup makers room to reverse course and compromise with Aung San Suu Kyi. More than 1,700 people have been arrested, including 29 journalists. “Western businesses with operations in the US, or American companies, have to again enhance their sanctions-compliance functions in order to ensure that the ultimate destination of US technology is not a SDN sanctioned company, while at the same time continue the compliance with the FinCEN (Financial Crimes Enforcement Network) sanctions,” Rose said.Â. The sanctions have thus far been limited to give Min Aung Hlaing and his newly established State Administration Council junta room to back-pedal on the coup and seek a political compromise with coup-toppled Aung San Suu Kyi and her National League for Democracy (NLD) party, according to Eric Rose, a counsel with Herzfeld & Rubin PC, the first US law firm to establish an office in Yangon in 2013 and thereafter the first to pull out in 2018. “To understand how limited the US sanctions are at this time, President Biden could have sanctioned Senior General Min Aung Hlaing’s son, U Aung Pyae Sone, who, among his assets, has A&M Mahar company, which sells Myanmar FDA (Food & Drug Administration) clearances and brokers imports of pharmaceuticals and medical technology,” Rose said in an interview with Asia Times.Â. “Businesses, foreign and domestic, need stability and a predictive path for their investments, in order to establish a credible return on investment,” Rose said. The two conglomerates being targeted, Myanmar Economic Corporation and Myanmar Economic Holdings Limited are also used by the military to control vast swaths of the country's economy, with holdings ranging from beer and cigarettes to tires, mining, and real estate. One option would be to impose economic sanctions on the two largest military conglomerates: The Union of Myanmar Economic Holdings Ltd. and Myanmar Economic Corp. US-based Chubb was one of five international companies that won a license to run 100% foreign-owned insurance business in Myanmar in bids held in April 2019 by the now-ousted NLD government. Telecommunication. On February 11, Biden issued an executive order placing ten new Myanmar nationals on an existing US sanctions blacklist while freezing some US$1 billion in military-held assets and imposing new restrictions on US exports to Myanmar. Military coup, economic sanctions hike threats to Myanmar's forests By Michael Taylor, Thomson Reuters Foundation 2 days ago Texas judge deals Biden another blow on 100-day deportation ban US exceptionalism surges again: Will it fly? COLLEGE PARK, Maryland: US President Joe Biden ordered a series of sanction s against Myanmar’s military leadership on Wednesday (Feb 10), … Washington is also introducing export restrictions, requiring U.S. suppliers to seek hard-to-obtain licenses to ship Myanmar's military certain items. Crackdown escalates one month after military coup in Myanmar, Myanmar's ambassador to the U.N. has been fired, Myanmar neighbors press for Suu Kyi release, At least 18 dead after bloodiest day of protests since Myanmar military coup, Children join anti-coup protests in Myanmar, Suu Kyi charged again as Myanmar protests rage, Singapore PM: Situation in Myanmar 'tragic', Shots fired at Yangon anti-military protest. cement and rubber), MEC's operations are shrouded in secrecy. Rose spent several years facilitating clients’ investments in Vietnam before shifting to Myanmar in 2013, hoping to replicate his firm’s success in what was then being referred to as a “last frontier” market. Police run towards protesters to disperse a demonstration being held against the military coup in Yangon on March 3, 2021. “Furthermore, there are dozens of MEC or MEHL-controlled companies and their affiliates which could be sanctioned, as they are directly under the control of Senior General Min Aung Hlaing,” he added. Under Biden’s February 11 sanctions, an additional ten Myanmar individuals were added to an existing blacklist of Specifically Designated Nationals (SDNs) along with three Tatmadaw-connected companies. In some ways, US companies are ahead of the game. Terminal Port. Hteedan Port. UN expert calls on UNSC to impose global arms embargo, economic sanctions on Myanmar. And at least 54 people have been killed, according to the United Nations. Multilateral lenders such as the World Bank and Asian Development Bank reopened Myanmar offices and ODA started to flow again to one of the world’s least developed nations after five decades of military mismanagement. The White House has said that the situation on the ground in Myanmar is "troubling" and the Biden administration has been working closely with its partners in the region. - The United States unveiled new measures on Thursday to punish Myanmar's army for its coup. The two conglomerates identified - Myanmar Economic Corporation and Myanmar Economic Holdings Limited - are among those used by the military to control vast swathes of Myanmar… Transport. The impact of the coup and renewed sanctions is expected to be more pronounced on new investments, or the lack thereof. We think these sanctions should begin with powerful military conglomerates Myanmar Economic Corporation and Myanmar Economic Holdings Public Company Limited, as well as Senior General Min Aung Hlaing and other senior military officials. A handful of investors have already thrown in the towel, including Japan’s Kirin Group, which announced soon after the coup its decision to pull out of its 2015 investment in Myanmar Brewery, a joint venture with MEC. US private-equity firm TPG Capital bought a stake in Myanmar Distillery and then sold it to Thai billionaire Charoen Sirivadhanabhakdi in 2017 for an estimated $500 million. More than 1,700 people have been arrested, including 29 journalists, and at least 54 people have been killed, according to the United Nations. But the new measures are expected to have limited impact as the US ships little to Myanmar annually. Founded in 1997 by Lt General Tin Hla to establish profitable heavy industriesthat can provide the Burmese military access to supplies of important materials (e.g. Telenor is not the only western company to have benefitted from Myanmar’s re-emergence. The new measures come as the military intensifies its crackdown on peaceful protesters, who have taken to the streets almost every day since Aung San Suu Kyi's elected government was overthrown on February 1. BANGKOK – New US sanctions on Myanmar’s military coup makers will make doing business in the increasingly combustible country much riskier, though some legal experts feel the Joe Biden administration could have gone harder. President Joe Biden slapped sanctions on Myanmar last month, including the defense minister and three companies in the jade and gems sector. Thailand’s Amata Group, meanwhile, has suspended its investment in a massive $1 billion industrial estate outside of Yangon. The raft of mostly Western sanctions was deemed ineffective in beggaring the military top brass but were without question crippling economic development, barring the flow of official development assistance (ODA) and making Myanmar’s already impoverished people even poorer. The punitive move was seen as a first step in what is likely to be a new generation of sanctions on Myanmar’s military, or Tatmadaw, in the weeks to come, particularly if the junta intensifies its crackdown on nationwide anti-coup protests which show little sign of abating. BANGKOK – New US sanctions on Myanmar’s military coup makers will make doing business in the increasingly combustible country much riskier, though some legal experts feel the Joe Biden administration could have gone harder. Myanmar Economic Holdings Limited and Myanmar Economic Corp are sprawling holding companies with investments spanning various sectors including banking, gems, copper, telecoms and clothing. So what does this mean for companies doing business in Myanmar? Calling for wide-ranging punitive sanctions, Andrews urged the UNSC to impose a global arms embargo and targeted economic sanctions on the military rulers. Sources told Reuters the US has also indefinitely frozen $1 billion in funds, which Myanmar's military rulers attempted to withdraw from the Federal Reserve Bank of New York. There is little doubt that one of the main reasons the quasi-elected but military-backed Thein Sein government freed Suu Kyi from detention in 2011 and allowed her to contest a by-election in early 2012 was to coax the West to ease their economic sanctions. White House Press Secretary Jen Psaki told reporters at her daily news conference on Thursday that the Biden administration has taken sanction steps to send a clear message that the coup in Myanmar is … U.S. Slaps Sanctions on Myanmar in Response to Military Coup. June 2, 2015. States should impose sanctions on the Myanmar Oil and Gas Enterprise, now controlled by the military and its largest source of revenue, he said in a … China’s ambitions threatened by US equipment ban, China budgeting 6.8% more for military in 2021, The staying power of SE Asia’s political militaries, Powerplay: America eyes ICBM-killing ships, Emirati-Chinese drone link-up revealed at IDEX: source, Marines setting the bar higher on rifle range, Jammer drones: The Pentagon’s smallest big secret, Huobi ‘launching HK crypto asset funds’, Vietnam warns investors about crypto risks, 22% of institutional investors eyeing crypto, Turkish finance ministry to assess crypto regulation, Thai watchdog backs off crypto rules plan, Inner Mongolia to shut down crypto mining farms, Proudly powered by Newspack by Automattic. Previous U.S. sanctions on Myanmar have included a blanket ban on imports from the country as well restrictions on the export of financial services to Myanmar. In retrospect, pulling out in 2017 may have been a wise move. The United States unveiled new measures on Thursday to punish Myanmar's army for its coup.The action includes blocking top military conglomerates and the ministries of defense and home affairs from certain types of trade.Sources told Reuters the U.S. has also indefinitely frozen $1 billion in funds, which Myanmar's military rulers attempted to withdraw from the Federal Reserve Bank of New … That effectively removed scores of Myanmar nationals from the blacklist, unfroze Myanmar assets in the US and dropped a ban on jade imports from Myanmar. Covering geo-political news and current affairs across Asia. Myanmar Economic Corporation Telecommunication 800MHz CDMA Mobile Phone Project. In a statement on Thursday, the U.S. Commerce Department said that it will not continue allowing Myanmar's military to benefit from access to many items. Advocacy group, Justice for Myanmar, said on Tuesday that the Ministry of Home Affairs which commands the police had purchased American technology that was being used for social media surveillance. Myanmar Economic Corp (MEC) and Myanmar Economic Holdings Ltd (MEHL) are two of the Tatmadaw-controlled conglomerates with wide-ranging investments in mining, tourism, banking and a host of other business activities which, along with the activities of several “crony companies”, account for an estimated 50% of Myanmar’s gross domestic product (GDP). US President Joe Biden slapped sanctions on Myanmar last month including the defense minister and three companies in the jade and gem sector. Through these umbrella companies, the military is involved in a whole range of economic sec­tors, including gems, tourism, transport, banking, and real estate. Biden’s new executive order also includes sanctions “to limit exports of sensitive goods to the Burmese [Myanmar] military and other entities associated with the recent coup,” with immediate export restrictions imposed on Myanmar’s Ministry of Defense, Ministry of Home Affairs, Tatmadaw and security services. Thomas Andrews urges the UN Security Council to impose an arms embargo and economic sanctions on military rulers. Ironically, the granting of licenses in 2013 to foreign telecom giants Norway’s Telenor Group and Qatar’s Ooredoo Group to operate 2G-4G mobile phone services in the country led to the explosion in digital-based communications and the use of social media that has facilitated the nationwide protests and civil disobedience campaigns now challenging junta rule. “What it means for business is, first, do your due diligence on who your partners are and understand the military links for your partners.”. But the new measures are expected to have limited impact, as the U.S. ships little to Myanmar annually, and the targeted entities are not major importers. The tactic worked, at least temporarily. Myanmar's military is active in many parts of the economy via its two conglomerates, Myanma Economic Holdings (MEHL) and Myanma Economic Corporation (MEC). Revenues generated from MEC have strengthened the Burmese military's autonomy from civil… Is Toyota’s fuel cell module a hydrogen breakthrough? Geneva [Switzerland], March 5 (ANI): United Nations human rights investigator on Myanmar Thomas Andrews on Thursday (local time) urged the Security Council to impose a global arms embargo and economic sanctions on the military generals and move the atrocities to the International Criminal Court for prosecution. The Texas Pacific Group (TPG) has also made several profitable investments in Apollo Towers, a telecom-related firm. Access to telecom services has also become crucial to day to day functioning of the Myanmar economy, which has become even more reliant on digital services in the era of Covid-19, which hit Myanmar’s economy hard last year. Myanmar was also put back of the US Financial Action Task Force’s “grey list” in 2020 in response to signs of ethnic cleansing of the Rohingya in Rakhine state. On February 11, Biden issued an executive order placing ten new Myanmar nationals on an existing US sanctions blacklist while freezing some US$1 billion in military … Washington is also introducing export restrictions, requiring US suppliers to seek hard to obtain licenses to ship Myanmar's military certain items. “Under the current circumstances, that is an impossibility.”. This site, like many others, uses small files called cookies to help us improve and customize your experience. The Thein Sein administration (2010-2015), a mix of military men and technocrats, facilitated the process by pushing through an impressive reform agenda that included easing restrictions on the press, releasing political prisoners, issuing new laws to encourage foreign direct investment (FDI) and opening up the telecoms and banking sectors to foreign players. “I fully expect that, in addition to these restrictions, more of the MEC and MEHL-controlled companies will be added to the SDN list if substantial progress is not made soon in reversing the coup, freeing the arrested NLD members and re-establishing of the elected Hluttaw (Parliament),” he added. “We entered Myanmar in 2013 with a clear ambition to support the country in its progress and economic development. U.S. President Joe Biden, facing his first major international crisis after Myanmar's military seized power, could impose a new program of sanctions, cut aid … Sources told Reuters the U.S. has also indefinitely frozen $1 billion in funds, which Myanmar's military rulers attempted to withdraw from the Federal Reserve Bank of New York.