Sanctions have brushed up against shipping again — this time as the US and UK impose further measures against the Myanmar military regime, after a coup in February.
Both countries blacklisted Myanma Economic Holdings Ltd (MEHL), one of two highly-diversified and allegedly military-backed companies that the current regime uses to enrich itself and maintain power.
MEHL — which the US describes as a "vast and secretive" conglomerate — has a stake in Myanma Five Star Line, a Yangon-based shipowner that is the largest in the Myanmar flag.
"Today’s sanctions target the military’s financial interests to help drain the sources of finance for their campaigns of repression against civilians," UK foreign secretary Dominic Raab said in announcing the sanctions on 25 March.
Myanma Five Star Line was not named as a sanctioned entity, but blacklisting includes a company's subsidiaries and exposes all those who do business with them to potential sanctions action.
The UK's foreign office declined to confirm the company was among MEHL's holdings. The US Treasury Department did not respond to a request for comment.
But documents provided to TradeWinds by activist group Justice for Myanmar show MEHL as holding a 90% stake in Myanma Five Star Line.
The company owns 14 ships, according to shipping databases, nearly all of them small, ageing general cargoships.
Myanma Five Star Line is listed as owner and manager of the fleet. The newest vessel is the 2,500-dwt Citra (built 2021) and the largest is the 18,315-dwt U Thar (built 1995).
Deep ties
According to the US, MEHL is involved in Myanmar's banking, trade, logistics, construction, and mining to tourism, agriculture, tobacco, food and beverage industries.
Thompson Reuters-backed news outlet Myanmar Now reported last summer that MEHL's import and export holdings were led by military personnel and largely has been since its creation in 1990. The company, it said, was created by the country's former military government to dominate a large swathe of the economy.
Justice for Myanmar identified Major General Khin Maung Than as a director of MEHL and has been named by the group and others as the director of military procurement.
Myanma Five Star Line was acquired by MEHL sometime between 2009 and 2012, Myanmar Now said.
The military once again seized control of the country on 1 February, arresting elected leader Aung San Suu Kyi whose party, the National League for Democracy, won several elections months prior.
She was first elected after the country's first open elections in 2015.
After taking control, the military arrested Aung San Suu Kyi and put the country in a year-long state of emergency.
Since, protests have erupted nationwide and quickly escalated with 114 killed on 27 March.
The country was first hit by sanctions following what the United Nations described as ethnic cleansing against the ethnic minority Rohingya people.
Further sanctions were placed on the country after the military coup, but until now have largely been focused on its leaders.
