US drops sanctions on Myanmar junta's allies after military chief praises Donald Trump

Australia Broadcast Center

2 days ago

The United States has lifted sanctions on several allies of Myanmar's ruling generals and their military-linked companies in a move that has prompted concern from politicians and rights groups.
Junta chief Min Aung Hlaing seized power in a 2021 coup, deposing the civilian government and sparking a civil war that has killed thousands, displaced 3.5 million left and half the nation in poverty.
The US Treasury announcement it would lift the sanctions came two weeks after Min Aung Hlaing sent a glowing letter of praise to US President Donald Trump, in response to his threat of tariffs, and commended him for shutting down US-funded media outlets covering the conflict.
Rights groups say the decision risks undermining efforts to hold the country's military regime accountable.
The US Treasury said it had dropped sanctions against KT Services & Logistics and its founder, Jonathan Myo Kyaw Thaung, who were sanctioned in 2022 for leasing Yangon's port from a military-owned firm.
Others delisted include the Myanmar Chemical and Machinery Company and Suntac Technologies, which were previously sanctioned for producing arms, including tanks and mortars.
A US Treasury spokesperson said the removals were conducted "in the ordinary course of business" and declined to explain why the individuals were removed from the list.
A senior Trump administration official said the decision was unrelated to the general's letter.
John Sifton, Asia advocacy director at Human Rights Watch, described the decision as "extremely worrying" and said it suggested a weakening of the US sanctions regime.
"The individuals involved are not marginal players; they have facilitated the junta's arms imports from countries such as China and Russia," analyst Sean Turnell told the ABC.
"These are people who are closely tied to Myanmar's war economy.
"Lifting sanctions on them sends the wrong message."
The sanctions decision comes as Myanmar's military continues deadly air strikes against civilians.
In May, a junta air strike on a school in Sagaing region killed 20 students and two teachers, according to local witnesses.
The strike was carried out despite a purported humanitarian ceasefire called to help the nation recover from a devastating earthquake.
In July, more than 20 civilians, including children, were reportedly killed in another air strike on a monastery sheltering displaced people.
Amnesty International data has shown that the military has continued importing aviation fuel despite sanctions, enabling lethal air strikes across the country.
This year, the junta's China and Russia-backed forces have clawed back ground on the northern front. State media also said its soldiers managed "to fully retake" the gold mining town of Thabeikkyin this week.
Early this month, as part of a slate of import tariffs Mr Trump ordered, Myanmar was notified of a 40 per cent tariff to take effect on August 1.
On July 11, Min Aung Hlaing responded by proposing a reduced rate of 10 per cent to 20 per cent.
US Democratic Representative Ami Bera, the top Democrat on the House Foreign Affairs Subcommittee on Asia, said the decision to lift the sanctions "goes against our values of freedom and democracy".
However, White House spokeswoman Anna Kelly said that sanctions delistings "were collected over the last year in accordance with standard Treasury course of business".
The US maintains sanctions against Min Aung Hlaing and two state-owned banks, the Myanma Foreign Trade Bank (MFTB) and Myanma Investment and Commercial Bank (MICB).
Mr Turnell said it was important to keep individuals and banks involved in the military's procurement network on the sanctions list as it could complicate efforts to restrict the regime's access to foreign currency, which remains critical for weapons purchases.
"Even Myanmar's allies, such as Russia and China, insist on payment in dollars or euros," Mr Turnell said.
"That makes financial sanctions one of the most effective levers the US still holds."
ABC/wires