Myanmar state-owned banks to be sanctioned by US

The United States plans to levy new restrictions this week to cut off finances to Myanmar’s military junta, according to sources with knowledge of the matter and Thai news outlets.

The Thai reports, published on Tuesday, said Washington would announce new sanctions on Myanmar Foreign Trade Bank and Myanmar Investment and Commercial Bank soon.

Two people with knowledge of the matter told Reuters the reports were accurate.

The US Embassy in Thailand said in a statement the United States “continues to look for ways to promote accountability for the coup and related violence, including efforts to block revenue to the regime.”

“Our goal in these designations is to constrain the regime’s access to US dollars and to promote accountability for the regime as it continues committing horrific acts of violence.”

The United States and other Western nations have imposed multiple rounds of sanctions on Myanmar’s military leaders since they seized power in a coup in 2021, overthrowing the democratically elected government led by Aung San Suu Kyi and killing thousands of opponents in a crackdown.

A spokesman for Myanmar’s military junta said it was not worried about any new sanctions.

Zaw Min Tun told the state media channel MWD on Tuesday evening that the country has experienced sanctions before and they will not face losses if there are new sanctions on Myanmar state-owned banks.

He said the United States was “just doing this to cause difficulties in economics and politics”.

“These kinds of things will cause unnecessary delays while we walk towards the multi-party democratic system.”

One of the Thai media reports, by Bangkok Business News, cited Thai sources as saying the sanctions would impact Thailand and other countries in the region financially because of connections with local banks.

The US embassy said it had regular conversations with the Thai government on Myanmar including how to “mitigate the potential impact of any sanctions on Thailand or other countries.”

Thailand’s outgoing military-backed government earlier this week hosted controversial talks aimed at re-engaging with Myanmar’s military, saying dialogue was necessary to protect its border with the strife-torn country, even as top diplomats of key South-East Asian neighbours continued to shun the junta.

Critics said the meeting in Pattaya had undermined a unified Asean approach to the Myanmar crisis, centred on a peace plan agreed with the junta two years ago.

But Thai Prime Minister Prayut Chan-o-cha, who had himself seized power in a coup in 2014, said direct talks were necessary to protect Thailand. — Reuters