On August 23, 2023, the US Department of the Treasury’s Office of Foreign Assets Control imposed additional sanctions and expanded Burma-related sanctions authorities by issuing a new determination in response to recent airstrikes by Burma’s military that killed 10 civilians near Nyaung Kone village and up to 80 civilians, including women and schoolchildren, in the Sagaing region of central Burma. The determination, issued pursuant to section 1(a)(i) of Executive Order 14014, enables the imposition of sanctions upon any foreign individual or entity that operates in the jet fuel sector of the Burmese economy. OFAC also designated two individuals and one entity that provide jet fuel to the Burmese military – persons that were designated by the UK earlier this year. OFAC also designated two entities owned or controlled by one of the newly-designated individuals. The designations were issued pursuant to Executive Order 14014 for operating in the jet fuel sector of the Burmese economy or being owned or controlled by a designated person.
As a result of these OFAC designations, all property and interests in property of these designees within the United States or within the possession or control of a US person are blocked, and US persons are generally prohibited from engaging in transactions involving the designated persons. In addition, entities owned 50 percent or more by one or more blocked persons are also blocked.
OFAC also issued Frequently Asked Questions 1132 and 1133 to clarify the provisions in the new determination. FAQ 1132 clarifies that all persons that operate or have operated in Burma’s jet fuel sector are not automatically sanctioned by the determination. The FAQ provides that sanctions will be only be imposed upon foreign persons that the Secretary of the Treasury, in consultation with the Secretary of State, determines to be subject to sanctions. FAQ 1133 discusses what is meant by the term ”jet fuel sector of the Burmese economy’ in the new determination.