The EO authorizes the blocking of the property and interests in property of any foreign person 8 determined by the Secretary of the Treasury, in consultation with the Secretary of State: 6 The following day, the President issued Executive Order (" EO") 14014, "Blocking Property with Respect to the Situation in Burma." 7 EO 14014ĮO 14014 targets the Burmese military, its leaders and their business interests. 10, President Biden laid out the steps his Administration would be taking, which included: (i) imposing sanctions under the authority of a new executive order (ii) implementing strong export controls and (iii) pursuing measures to prevent Burmese military leaders from accessing US$1 billion of Burmese government funds held in the United States.
Biden pledged immediate action in response to the Burmese military's seizure of power in a statement issued on Feb. However, the Burmese military may impose new conditions on businesses that conflict with those values.
Since the coup, some have reiterated their support for the rule of law and human rights protection. 3 The coup has placed foreign companies active in Burma in a delicate position. 2 They have reportedly used various foreign-origin technologies and products, in some cases obtained in violation of various countries' export controls. In countering the protests, security forces have resorted to increasing violence leading to a large number of fatalities. The coup has drawn significant domestic opposition and the Burmese military's reaction has raised human rights concerns. 1, 2021, the military responded by detaining the country's civilian leadership, including State Counsellor Daw Aung San Suu Kyi, and declaring a one-year state of emergency. In Burma's November 2020 national elections, the civilian-led National League for Democracy (" NLD") won an overwhelming victory over the military-backed Union Solidarity and Development Party (" USDP"). Given the Burmese military's pervasive presence in Burma's economy, companies are advised, as a matter of priority, to assess their commercial ties with Burma. The US has signaled that it is preparing additional measures targeting the individuals responsible for the coup and ensuing violence. Allied governments, including the European Union, the United Kingdom and Canada, either have promulgated their own sanctions or are considering doing so. 1 In response to the coup, the US has so far designated 12 individuals and three entities and imposed restrictions on certain exports. On February 1, 2021, the Burmese military announced that it had seized control of the country from the country's democratically elected government.