New sanctions against the Burmese regime
Companies put an end to their activities on Burmese soil where the repression of the protest by the military junta in power has left more than 520 dead (illustrative image).
AP
Text by: Alexis Bedu Follow
4 min
After US sanctions earlier this week, Japan announced the suspension of all new aid to Burma.
Companies, such as the renewable energy producer Voltalia, are putting an end to their activities on Burmese soil where the repression of the protest by the military junta in power has left more than 520 dead.
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These are not direct sanctions, but it is a serious caveat.
In an attempt to promote the return of the democratic process, Japan, which maintains close ties of economic cooperation with Burma, decides to stop its aid.
The decision should only apply to new aid and not to already existing projects.
An effective means of pressure to restore democracy?
"
We will see the reaction of the military junta,
but what is certain is that the sanctions targeting high-ranking Burmese officers have not been proven effective
," explains Françoise Nicolas, director of the Center-Asia zone at the 'French Institute of International Relations (Ifri).
It is to
be hoped that the much broader sanctions against the Japanese and the Americans will have a much greater effect.
"
An asset freeze in Singapore?
These economic sanctions could have consequences for the Burmese population who could find themselves victim of negative collateral effects, but for Françoise Nicolas, with the repression of the protest which has killed nearly 520 people since February 1, a point of no return has been crossed.
“
The people demonstrate every day that they are almost ready for the supreme sacrifice.
The possible wider sanctions also affect the population;
that's no longer the problem ... in the eyes of the people themselves
.
"
►
Read also: Burma: Western economic sanctions have a limited effect
The Burmese military junta can count on the support of China or Russia, which poses a problem for the effectiveness of sanctions at the international level.
"
Actors, like Singapore, could play a role in freezing the assets of the Burmese junta,"
explains Françoise Nicolas
, "there should be broader cooperation from the players who matter to the Burmese economy
."
"
►
To read also: Burma: the army continues to kill demonstrators, the impossible mourning of families
Start of sanctions from companies
Businesses still remain discreet.
The French producer of renewable energies Voltalia announced this Wednesday, March 31, to withdraw from Burma and EDF indicated on Sunday that it was suspending a dam project in the country.
On the other hand, Accor, the sixth largest hotel group in the world, intends to stay in Burma where it operates nine hotels and carry out half a dozen projects, despite the repression.
A few days after the coup, Total declared itself "
concerned
", calling for "
a peaceful solution
".
The group that operates Burmese gas, however, does not intend to withdraw for the moment.
"
We cannot ask Total to withdraw from the Burmese market, we do not close an oil or gas operation overnight, but there are other ways to do,
ensures Françoise Nicolas
, the interruption of the payment of taxes and depositing the income in escrow accounts so that it does not fall into the junta's pockets could have effects, because it is money that matters a lot to the junta
.
"
The idea of economic sanctions is gaining ground in some societies.
The German group Giesecke + Devrient (G + D), one of the world leaders in the printing of banknotes, announced Wednesday to suspend its deliveries of material to the Burmese authorities with immediate effect.
The Munich-based company ceases its deliveries to the Burmese state printing press from which the national currency comes out, according to a statement specifying that it is "
a reaction to the violent clashes underway between the military and the civilian population
”.
This could have a significant impact because, according to the daily
Süddeutsche Zeitung
, the material delivered by the German company is essential for the issuance of currency in Burma and the junta could be faced with a lack of liquidity.
►
To read also: Burma: after disobedience, the civil war?
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