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US warns of sanctions risk for all foreign suppliers of jet fuel to Myanmar military 

Rather than target specific individuals or entities, the new action expands the government’s authority to impose blanket sanctions on any person or entity enabling the Myanmar regime to acquire fuel for military purposes

The Biden administration on Wednesday introduced an expansion of sanctions targeting the Myanmar military junta, which will expose all foreign individuals and entities connected to the country’s trade in aviation fuel to sanctions risk.

A statement issued by the US Treasury Department’s Office of Foreign Assets Control (OFAC) said that new designations will allow the imposition of sanctions on “any foreign individual or entity that operates in the jet fuel sector of the Burmese economy,” referring to Myanmar by an old name.

“Anyone supplying jet fuel to individuals or entities in Burma should exercise extreme caution to ensure jet fuel is provided only for use in civil aviation and not to military regime users,” OFAC said in published materials explaining the new measure.

As part of its newly amended sanctions regime, the US imposed the restrictions on two Myanmar nationals—Khin Phyu Win and Zaw Min Tun—for involvement in the jet fuel sector, and on three Singaporean companies with connections to them. 

Khin Phyu Win, who has been associated with several jet fuel-related companies under the Asia Sun Group, became a US sanctions target in March for importing fuel on behalf of the military. She maintains an interest in the procurement and distribution of aviation fuel through her ownership and control of Shoon Energy (formerly Asia Sun Aviation), PEIA, and P.E.I. Energy, all Singapore-based companies.

Zaw Min Tun became the director and owner of several Asia Sun Group companies after Khin Phyu Win transferred them to his name, including Asia Sun Trading, which was also sanctioned by the US in March.

“By expanding the use of our sanctions authority to target an additional sector critical to the military regime, we are able to further deprive the regime of the resources that enable it to oppress its citizens,” said Brian E. Nelson, the US Treasury’s undersecretary for terrorism and financial intelligence.

The OFAC statement also cited airstrikes the Myanmar junta carried out in Sagaing Region villages in April and June, which have killed scores of civilians. 

The new action targets activities related to the importation, exportation, reexportation, sale, supply, or transport, directly or indirectly, of jet fuel in or involving the country, according to the OFAC. 

This includes any activities for or related to the military regime, such as jet fuel used to transport military supplies, or for state-owned aircraft used by members of the military regime, as well as for combat vehicles and aircraft used in offensive and defensive military operations inside the country. 

It will not target those engaged in activities related to civil aviation, including the sale, provision, or purchase of jet fuel to commercial airlines, or for air transport of civilians into and out of the country.

The US has imposed sanctions on 85 people and 55 business entities tied to the military regime. This includes 10 people and 15 entities newly designated as sanctions targets this year.

This expansion of the government’s sanctions authority follows the treasury department’s imposition of sanctions on the Myanmar Foreign Trade Bank and the Myanma Investment and Commercial Bank in June. 

Following OFAC’s announcement, the pressure group Burma Campaign UK said in a statement that the move serves as a warning to all international companies against direct or indirect involvement in the supply of aviation fuel to Myanmar’s military. 

“The US has been playing whack-a-mole trying to sanction Burmese-linked companies involved in aviation fuel, which then just change name or ownership,” said Mark Farmaner, the director of Burma Campaign UK. “With this new determination, the USA can now start sanctioning international companies and stop aviation fuel reaching Burma in the first place.”

The group also called on the Biden Administration to impose sanctions on five British insurance companies said to have insured aviation fuel deliveries to Myanmar, naming the entities UK P&I, Steamship Mutual, Britannia P&I, North Standard and Shipowners’ Club in its statement. 

“These insurance companies have decided to continue to provide cover for aviation fuel deliveries to Burma in the full knowledge that the aviation fuel deliveries they provide insurance for may be used to bomb schools, hospitals, homes and churches,” the group said. 

Since the military coup on February 1, 2021, an estimated 4,000 people have been killed by the junta, with tens of thousands detained, according to monitoring group Assistance Association for Political Prisoners. 

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