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OFAC Expands Myanmar Sanctions to Cover Jet Fuel, Issues New Designations

The Office of Foreign Assets Control this week expanded its Myanmar sanctions regime to cover the country’s jet fuel sector and sanctioned people and companies involved in procuring and distributing jet fuel to Myanmar’s military regime.

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A new determination, released Aug. 23, allows OFAC to sanction parties involved in importing, exporting, reexporting, selling, supplying or directly or indirectly transporting jet fuel in or “involving” Myanmar, the agency said in new guidance. OFAC said it plans to target jet fuel trade involving military end users in the country, including fuel used for military resupply aircraft, state-owned aircraft used by members of the military, and combat vehicles, such as jets and attack helicopters, used in military operations inside the country. The agency stressed that it doesn’t plan to sanction parties for “engaging in activities related to civil aviation,” including supplying fuel for commercial airlines.

It also clarified that the sector determination “does not automatically impose sanctions on all persons who operate in the sector.” OFAC will announce individual sanctions against parties involved in procuring fuel for the military.

The agency issued new designations along with the announcement, targeting Khin Phyu Win, who owns Shoon Energy PTE. LTD., PEIA PTE. LTD., and P.E.I Energy PTE. LTD., Singapore-based holding companies that are involved in the procurement and distribution of jet fuel. OFAC also sanctioned Zaw Min Tun, who also oversees companies operating in Myanmar’s jet fuel sector.