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US Determination on Jet Fuel to Myanmar: UK Insurance Companies Must Now Be Sanctioned By USA

August 23, 2023 All News, British policy on Burma, Targeted Sanctions, Trade and Investment

Burma Campaign UK today applauded the Biden Administration for finally making a determination that allows sanctions to be imposed on any foreign individual or entity that operates in the jet fuel sector of the Burmese economy.

The US Treasury states that:

“For the purposes of the determination of August 23, 2023 made pursuant to E.O. 14014, OFAC interprets the term “jet fuel sector of the Burmese economy” to include activities related to the importation, exportation, reexportation, sale, supply, or transport, directly or indirectly, of jet fuel in or involving Burma.”

The new determination follows the sanctioning by the USA of the Myanmar Foreign Trade Bank and the Myanma Investment and Commercial Bank by the USA earlier this year, which are understood to be used by the military and others for jet fuel purchases.

The Burmese military has been using deadly airstrikes against civilian targets on a regular basis since its attempted coup began in February 2021, displacing hundreds of thousands of people and causing a humanitarian crisis, bombing schools, hospitals and religious buildings.

“The US has just put all international companies on notice that if they are directly or indirectly involved in the supply of aviation fuel to Burma, they could face sanctions,” said Mark Farmaner, Director of Burma Campaign UK. “Limiting aviation fuel deliveries to Burma is the one of the most effective things the USA can do to address the human rights and humanitarian crisis in Burma.”

The US Treasury also imposed sanctions on Khin Phyu Win and Zaw Min Tun, for their role in aviation fuel industry in Burma and Shoon Energy PTE. LTD. , P.E.I Energy PTE. LTD. and PEIA PTE. LTD, which are Singaporean holding companies controlled by Burmese business cronies. 

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

Burma Campaign UK calls on the USA to now turn words into action and impose sanctions on five British insurance companies which have previously insured aviation fuel deliveries to Burma, and which have repeatedly refused to exclude cover for aviation fuel deliveries in the future. 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 five British insurance companies which refuse to stop providing cover for aviation fuel deliveries to Burma are UK P&I, Steamship Mutual, Britannia P&I, North Standard and Shipowners’ Club.

The Chief Executives who made the decision to keep providing insurance for aviation fuel deliveries to Myanmar, knowing that they could be used by the Burmese military, should also be sanctioned by the USA. They are:

Andrew Taylor, UK P&I
Jonathan Andrews, Steamship Mutual P&I
Andrew Cutler, Britannia P&I
Paul Jennings and Jermey Grose, North Standard P&I
Simon Peacock, Britannia P&I

“The determination by the USA today is a victory for the Burmese civil society and political organisations which have been calling for sanctions on aviation fuel deliveries for almost two years,” said Mark Farmaner. “The UK and EU must now follow the USA and ban UK and EU companies from being involved in aviation fuel deliveries to Burma. All governments must pick up the pace of sanctions implementation, cutting arms, equipment, revenue and aviation fuel supplies to the Burmese military.”

The US Treasury OFAC statement is available here.

The US Treasury OFAC FAQ on the determination is available here.

Burma Campaign UK media release on five British insurers involved in aviation fuel deliveries to Burma is here.

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Previous Post:Civil society statement on the visit of Head of OCHA to Myanmar
Next Post:On Eve of Indian Business Summit, 7 Indian Companies Added to ‘Dirty List’

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