Myanmar military-controlled companies blacklisted by U.S. and Britain

The United States and Britain imposed sanctions on Myanmar’s military-controlled alliances on Thursday, following the Feb. 1 riot and the destructive crackdown by the generals, with Washington calling it a response to “abhorrent violence and abuses.”

The sanctions targeted Myanmar Economic Holdings Public Company Ltd (MEHL) and Myanmar Economic Corporation Ltd (MEC), the U.S. Treasury Department said.

Pointing out the Myanmar military’s serious human rights violations against Rohingya Muslims, Britain also imposed similar sanctions on MEHL.

Representatives from the two sides did not comment immediately on Wednesday. Reuters had reported the sanctions had been expected.

Washington is the latest in a series of sanctions and in a move it freezes any assets held by the entities in the United States.

The designation has also restricted American citizens or companies from trading or conducting financial transactions with those listed.

As the U.S. financial institutions clear almost all dollar payments, the move effectively kicks blacklisted companies out of the American banking system.

The most significant action against the business interests of Myanmar’s military was decided on Thursday. Military controls vast swaths of Myanmar’s economy with interests ranging from beer and cigarettes to telecommunications, tires, mining, and real estate.

The U.S. Secretary of State Antony Blinken said in a statement that the Myanmar military “has taken increasingly disturbing actions aimed at their citizens since February 1.”

“By designating these entities, the United States and the UK have shown that we will follow through on our pledges to promote accountability for the coup and the abhorrent violence and other abuses we have seen in recent weeks,” Blinken said.

The Treasury Department’s Office of Foreign Assets Control’s director Andrea Gacki said that the United States was “targeting the Burmese military’s control of significant segments of the Burmese economy, which is a vital financial lifeline for the military junta” by imposing sanctions.

Several licenses were issued by the United States that provide exemptions for official U.S. government transactions and those of international and nongovernmental organizations despite U.S. sanctions related to the country.

Another license also approved transactions necessary to slow down business until June 22 involving MEC and MEHL or any entity they own.