EU sanctions 22 Myanmar officials and gas company over coup violence
- Among those sanctioned was the state-owned Myanma Oil and Gas Enterprise (MOGE), which is a joint venture partner in all offshore gas projects in Myanmar
- Prior rounds of US and European sanctions against the Myanmar have excluded oil and gas, a sector with revenues that make up about half of Myanmar’s foreign currency
The new listings target 22 individuals including government ministers, as well as high-ranking members of the Myanmar Armed Forces, the European Council said on Monday. It also targets four entities, including state-owned companies like Myanma Oil and Gas Enterprise (MOGE), which were found to provide the regime with “substantive resources”.
Myanmar’s oil and gas sector has become a target of international pressure of late as one of the junta’s most important sources of income and foreign exchange given oil products are priced in US dollars.
MOGE is the operator and regulator of the oil and gas sector, overseeing exploration and the distribution of petroleum products. It also grants permits and collects tax on profits made by private companies that are in production sharing contracts or joint ventures.
“MOGE is thus controlled by and generates revenue for the Tatmadaw, therefore contributing to its capabilities to carry out activities undermining democracy and the rule of law in Myanmar,” the European Union said in an update of its legislation, referring to the armed forces by its official name.
About 50 per cent of Myanmar’s foreign currency comes from natural gas revenues, with MOGE expected to earn US$1.5 billion from offshore and pipeline projects in 2021-2022, according to a Myanmar government forecast. Prior rounds of US and European sanctions against the Myanmar have excluded oil and gas.
Military regime spokesman Zaw Min Tun dismissed the EU measures, saying it won’t have much impact on a sector that survived for years under sanctions.