Burma sanctions expanded; aviation-fuel insurance ban

Summary#

These are the final Regulations Amending the Special Economic Measures (Burma) Regulations (SOR/2023-228). They came into force on October 27, 2023 and add people and companies to Canada’s Burma sanctions list and ban insurance for ships carrying aviation fuel to Burma (Myanmar).

What it does#

• Adds 39 individuals and 22 entities to the sanctions schedule. Examples include the State Administration Council, Cargo Link Petroleum Logistics Co. Ltd., and Myanma Five Star Shipping Company.
• Prohibits anyone in Canada, or any Canadian outside Canada, from providing insurance or reinsurance for ships transporting aviation fuel to Burma.
• Replaces the rule about helping prohibited activities so it covers knowingly causing, facilitating, or assisting in any activity already banned by the regulations.
• Allows existing insurance or reinsurance to continue only until 30 days after this amendment comes into force.
• Keeps written exceptions for humanitarian goods and personnel, UN staff and observers, some non-lethal equipment used for humanitarian or protection purposes, and Canadian military personnel on official duty. The Minister of Foreign Affairs can also issue permits in specific cases.

Who's affected#

• The primary targets are senior officials and companies tied to the Myanmar military regime.
• Named entities and people listed in the schedule (the additions above) will face the same restrictions as earlier listed parties.
• Canadian insurers, reinsurers and shipping companies will need to stop providing coverage for aviation-fuel shipments to Burma.
• Canadian banks and financial institutions must update screening and compliance systems to block transactions involving newly listed parties.
• Humanitarian organizations and UN actors are generally covered by exceptions, so the changes are not meant to block legitimate aid.
• It is unclear which specific Canadian businesses (if any) had direct dealings with the newly listed parties; the government expects the direct impact on most Canadian companies to be small.

Why it matters#

• The insurance ban targets a key support link for the Myanmar military’s air capability. Limiting insurance for aviation fuel shipments can make it harder and more costly for the regime to obtain the fuel used in air strikes against civilians.
• Adding more individuals and companies increases pressure on the military regime and aligns Canada with international efforts to limit arms and resources flowing to Myanmar.
• There are criminal penalties for willful breaches: a fine of up to $25,000 or imprisonment for up to one year on summary conviction, or up to five years on indictment.
• The government says the measures are designed to minimize harm to civilians and humanitarian operations while increasing costs for those who support or profit from the military regime.