Policy Recommendation: Australian Foreign Policy in Myanmar

Executive Summary:

International organisation Justice for Myanmar has called upon Australia to place economic sanctions on the Tatmadaw, specifically on fuel trade and investments. If Australia were to agree, it would restrict the military junta’s access to resources, thereby preventing further airstrikes and military operations against civilians. Australia has consistently provided foreign aid to Myanmar since the Tatmadaw took power in 1988. However, since the 2021 coup d’etat and the human rights breaches that followed, nations within the UN began to increase humanitarian aid and financial restrictions to oppose the oppressive military government. In 2023, Australia introduced further clauses to the 2018 Myanmar Sanctions Regime which included travel bans and economic sanctions to limit the regime’s access to military materials. Likemindeds, including nations in the European Union, have already placed similar economic sanctions on the country, in order to prevent future violence against innocent civilians and ethnic minorities. This provides an opportunity for Australia to increase respect and trust amongst international organisations for a commitment to peace and democracy. Although this policy proposal may have minor economic impacts on Australia’s fuel and resource industry, it aligns with foreign policy goals to enable cooperation when tackling international challenges.

Recommendations:

That you agree…

1. Australia will place economic sanctions on the Junta-controlled Myanma Oil and Gas Enterprise, preventing companies and investors from injecting money into Myanmar’s military

(Agree/Disagree)

2. Australia will cease all exportation of refined petroleum to Myanmar

(Agree/Disagree)

3. We release a comprehensive media statement to inform the public of Australia’s commitment to humanitarian aid throughout the ongoing crisis in Myanmar

(Agree/Disagree)

Budgetary Impact:

Trade costs - Australia exports 1.29% (worth $1.69 million) of the nation's refined petroleum to Myanmar. Although we could redirect this trade to other nations in order to avoid profit loss, 1.29% is ultimately a very minor percentage of Australia’s oil trade.

Investments - In 2021, over $100 million from the Future Fund has been invested into oil and gas companies in Myanmar. The sanctions will prevent any further money being invested into this industry.

Consultation:

Current investors in The Future Fund, the Federal Department of Industry, Science and Resources, Austrade

Background:

On the 1st of February, 2021, the military junta of Myanmar staged a coup that overthrew the democratically elected President Aung San Suu Kyi of the National League for Democracy party. The nation has since endured a humanitarian crisis, with citizens suffering mass killings, bombings, torture, restrictions to freedom of speech and right to assembly, and sexual violence. Since then, the military have expanded their operations, which has resulted in war crimes against ethnic minorities, such as indiscriminate airstrikes and artillery use on schools and hospitals. Furthermore, economic misconduct by the military junta has left citizens in absolute poverty, whilst funds are allocated towards military operations.

Australia has demonstrated commitment to the development of Myanmar as a democratic country through international advocacy, and does not provide any direct funding to the military regime. Along with travel bans to specific military personnel and sanctions on military equipment, Foreign Minister Penny Wong announced a provision of $9 million through the Australian Humanitarian Partnership. However, as previously noted, Australia’s Future Fund has millions of dollars worth of investments into Myanmar’s oil and gas companies; more specifically, the Myanma Oil and Gas Enterprise (MOGE). This company is controlled by the military junta. Therefore, although Australia is not directly funding the military regime, these investors are inadvertently providing the military with the resources to enact war crimes.

As many other nations from the United Nations and the European Union choose to divest their funds and investments from MOGE, the Tatmadaw are receiving a clear message of global disapproval. Although Australia cannot, and should not, directly interfere with another nation’s system of government, foreign policy and global change occurs through negotiation and contestation. Sanctions have historically been an effective method of international diplomacy as they provoke political change through the withholding and divestment of resources and funds, without excessive interference.

Policy Recommendation:

Consistent with international and European Union foreign policy consensus, it is recommended that economic sanctions are placed on Myanma Gas and Oil Enterprise as well as ceasing all refined petroleum exports from Australia to Myanmar. This would further demonstrate Australia’s dedication to the promotion of democracy and development of Myanmar. Having a limited effect on Australia’s trade and economy, as Myanmar is a relatively small market, the economic impacts will not be significant. This policy will ensure that Australia does not fund or contribute to the Tatmadaw’s violence.

Key Players:

Other UN nations such as Canada and the United Kingdom are yet to develop any fuel-specific sanctions on Myanmar. If Australia were to commit to divesting from military aligned oil and fuel companies, it would set a global example which may pressure other countries to follow.

Like Mindeds:

The European Union placed sanctions on twenty-two individuals, all state owned industries, and certain private industries that associate with the military, including MOGE, in 2022. Recently, on the 11th of March, 2025, Switzerland followed suit and imposed similar sanctions against Myanmar’s oil and gas industry due to ties to the military junta. Although the United Nations has not placed any economic sanctions on Myanmar, they have worked in other sectors to pursue peace and support the nation.

Domestic Considerations:

Approval of this policy will have little impact on domestic trade, as fuel exports to Myanmar only make up 1.29% of the nation’s refined petroleum trade. Due to the fact that Myanmar is not a significant trading partner for Australia, the only major economic impact would be on those who have invested in companies associated with Myanma Gas and Oil Enterprises. However, due to the climate crisis, there is an increasing need to divest from fossil fuel industries and turn towards renewable resources.

References

Amnesty International. (2023). Myanmar 2023. Amnesty International. https://www.amnesty.org/en/loc... People for Health, Education and Development Abroad. (2023, March 30). Isolating the Myanmar junta with oil and gas sanctions. Union Aid Abroad APHEDA. https://www.apheda.org.au/movi... of the EU. (2022, February 21). Myanmar/Burma: EU imposes restrictive measures on 22 individuals and 4 entities in fourth round of sanctions. European Council - Council of the European Union. https://www.consilium.europa.e... of Foreign Affairs and Trade. (2024, June). Myanmar Development Cooperation Factsheet. Australian Government - Myanmar. https://www.dfat.gov.au/countr... of Foreign Affairs and Trade. (2025, January 6). Joint Press Statement on the Human Rights and Humanitarian Situation in Myanmar. Australian Government. https://www.dfat.gov.au/news/joint-press-statement-human-rights-and-humanitarian-situation-myanmar

Gavshon, D. (2024, February 5). Australia’s Myanmar Sanctions, a Step Forward. Human Rights Watch. https://www.hrw.org/news/2024/02/06/australias-myanmar-sanctions-step-forward

Hassan, T. (2023). World Report 2023: Myanmar. Human Rights Watch. https://www.hrw.org/world-repo... for Myanmar. (2025, March 11). JFM welcomes Swiss sanctions on Myanma Oil and Gas Enterprise. Justice for Myanmar Press Releases. https://www.justiceformyanmar.... Observatory of Economic Complexity. (2023). Australia (AUS) and Burma (MMR) trade. OEC. https://oec.world/en/profile/b... What You Pay Australia. (2023, November 26). Australia’s FutureFund should not invest in companies funding Myanmar military. PWYP News. https://www.pwyp.org.au/news/22102021future-fund-must-act-on-myanmar-investments-say-ngo-coalition

Wong, P. (2024, October 19). Humanitarian assistance to Myanmar. Minister for Foreign Affairs. https://www.foreignminister.gov.au/minister/penny-wong/media-release/humanitarian-assistance-myanmar#:~:text=Australia%20will%20provide%20%249%20million,communities%20and%20conflict%2Daffected%20populations.