US and UK Move to Tighten Financial Support for Myanmar Military Junta

Freezing and Prohibiting Transactions of Military-Owned Enterprises' Assets
"Risk of Being Exploited for Human Rights Violations"

Tony Blinken, U.S. Secretary of State
[Photo by Reuters]

[Asia Economy Reporter Cho Hyun-ui] As the military and police continue their bloody violent crackdown in Myanmar, the United States and the United Kingdom have imposed additional sanctions targeting the military junta. They are tightening the financial lifelines by freezing assets and banning transactions with companies operated by the junta.

On the 25th (local time), the U.S. Department of the Treasury announced sanctions freezing the assets of Myanmar Economic Corporation (MEC) and Myanmar Economic Holdings Limited (MEHL), both owned by the Myanmar military, within the United States. MEC and MEHL are leading conglomerates in Myanmar, with Senior General Min Aung Hlaing, the top commander who led the recent coup, serving as their supreme leader.

The sanctions also prohibit U.S. companies or individuals from trading or conducting financial transactions with these companies. MEC and MEHL have expanded into virtually all sectors including Myanmar’s key industries such as gems, distribution, finance, travel, shipping, public transportation, construction, and textiles. Since they own over 120 companies, this measure is expected to have a significant impact on Myanmar’s economy.

U.S. Secretary of State Antony Blinken explained the rationale behind the sanctions, stating, "MEHL is structured so that its profits flow to the military, and MEC provides natural resources to the military and operates factories producing military supplies."

The UK Foreign Office also announced sanctions against MEHL on the same day, citing human rights abuses against the Rohingya Muslim minority. In a statement, the Foreign Office said, "MEHL’s revenues are strongly suspected to have been used in the past for the ‘ethnic cleansing’ of the Rohingya and could be exploited for serious human rights abuses in the future. This measure aims to dry up the military’s financial resources to prevent further civilian oppression."

The United States continues to pressure the Myanmar military. Previously, President Joe Biden froze $1 billion (approximately 1.135 trillion KRW) held in the name of Myanmar’s central bank at the Federal Reserve Bank of New York through an executive order. Following that, the Department of Commerce added four entities including Myanmar’s Ministry of Defense and Ministry of Home Affairs to the export control list. CNBC reported, "Several countries including the U.S., India, Australia, and Japan have pledged to restore democracy in Myanmar," adding, "especially the U.S. is demanding that China refrain from exerting influence in Myanmar’s civilian government restoration."

This content was produced with the assistance of AI translation services.