US eases sanctions on Myanmar

The United States yesterday eased some sanctions on Myanmar to support ongoing political reforms, but maintained most of its economic restrictions in an effort to punish those Washington sees as hampering the country's newly elected government.

US officials said they were easing sanctions to encourage the "historic" progress in Myanmar, including the formation of the country's first democratically elected government in more than 50 years.

The moves included removing Myanmar state-owned banks from a US blacklist and the lifting of sanctions against seven key state-owned timber and mining companies.

Officials said they hope the actions will eliminate key obstacles to trade in Myanmar. Potential investors in Myanmar have long complained that the blacklisting of some of the country's biggest banks made business in the country too risky. Major firms including General Electric, Western Union Co, Gap Inc, and Coca-Cola have made business forays into Myanmar, and the moves announced yesterday will ease their and other companies' ability to operate there.

The announcement highlighted a key challenge for Washington, as it seeks to both encourage political reform while maintaining pressure on those it sees as spoilers. More than 100 individuals and groups remain on Washington's sanctions blacklist for Myanmar.

The US moves followed a landmark November election in which the party of Aung San Suu Kyi, the country's Nobel Peace Prize laureate, won a landslide victory.