Aviation Fuel Export Ban to Myanmar

Summary#

These are final amendments to the Special Economic Measures (Burma) Regulations that add a ban on sending aviation fuel to Myanmar and add six people to the list of sanctioned individuals. The changes were registered on January 27, 2023 and published in the Canada Gazette on February 15, 2023.

What it does#

• Adds a prohibition on exporting, selling, supplying, shipping, transporting or otherwise dealing in aviation fuel destined for Myanmar or any person in Myanmar.
• Adds six individuals to Part 2 of the Regulations’ schedule:
  • Htein Win
  • Htin Latt Oo
  • Than Hteik
  • Nyunt Win Swe
  • Phone Myat
  • Thet Pon
• Allows for specified exemptions and permits (for example, for humanitarian assistance) under the Regulations. The Minister can issue permits in certain cases.
• The amendments took effect on the day they were registered (see January 27, 2023).

Who's affected#

• Canadian companies that produce, sell, transport or export aviation fuel or related services to Myanmar. Canada’s prior trade data shows energy exports to Myanmar were small ($75,600 in 2020 and $77,900 in 2021), so direct trade impact is likely limited.
• Banks and other financial institutions in Canada that must update compliance checks to reflect the new prohibitions and the newly listed individuals.
• The six named individuals and the Myanmar military regime, who will face added restrictions under Canadian law.
• Humanitarian organizations operating in or with Myanmar. The Regulations include exemptions intended to allow legitimate humanitarian aid, but groups should check the details and, if needed, seek permits.

Why it matters#

• The ban on aviation fuel is meant to reduce the Myanmar military’s ability to carry out air strikes by limiting access to a key supply. That is the stated policy goal of the amendments.
• Listing additional individuals signals Canada’s continued diplomatic pressure on the Myanmar military regime and aligns Canada with international partners taking similar actions.
• For most Canadians, the economic effect should be small given the very low levels of past aviation-fuel trade with Myanmar. Businesses that might be affected should review compliance obligations.
• Enforcement is handled by the Royal Canadian Mounted Police and the Canada Border Services Agency; the Regulations carry criminal penalties, including fines (up to $25,000) and possible imprisonment for serious offences.