Myanmar disguises Iranian jet fuel imports as South African diesel

Myanmar: Myanmar is a Southeast Asian country whose military seized power in a 2021 coup, triggering civil conflict and targeted US sanctions on its jet fuel sector over airstrikes against civilians. The nation continues to import jet fuel despite sanctions to support both commercial aviation and military operations. In this incident, Myanmar brokers and regulators arranged the delivery of Iranian jet fuel while disguising the cargo as diesel from South Africa. Dynamic Wave: Dynamic Wave is a Myanmar-based energy broker that arranges fuel imports for domestic clients. It signed the sham contract with Tawan-Oil Trading for what was presented as South African diesel but was actually Iranian jet fuel. The broker and its client, National Energy Prime Aviation Services Company, were authorized by Myanmar regulators to proceed with the mislabeled transaction. Tawan-Oil Trading: Tawan-Oil Trading is a Thailand-based trading firm previously identified by UN experts as a jet-fuel supplier to Myanmar's military. It entered into the contract to supply diesel to Dynamic Wave but facilitated the actual delivery of Iranian jet fuel via the tanker Reef. Payment for the shipment was directed to an account at a Thai bank associated with the firm. Siam Commercial Bank: Siam Commercial Bank is Thailand’s oldest bank and has been described in UN reports as a facilitator of Myanmar military procurement. The fuel contract required payment into Tawan’s account at the bank, linking it to the sanctioned transaction. Thai regulators have directed banks to scrutinize Myanmar-related deals to ensure compliance with sanctions and anti-money laundering rules. Myanmar military junta: The Myanmar military junta rules the country following the 2021 coup and has conducted airstrikes that have killed thousands of civilians, prompting US sanctions on jet fuel imports. It was directly involved in approving the mislabeling of the Iranian fuel shipment as diesel through a confidential regulatory letter. The junta benefits from continued access to jet fuel for its military campaigns despite international restrictions. Banking Role: Thai banking channels were used to process payments for the disguised fuel transactions involving entities tied to Myanmar procurement. Military Supply: Iran served as Myanmar’s primary jet fuel supplier in the period leading up to the reported shipment, enabling both civilian and military aviation needs. Sanctions Evasion: Myanmar entities relied on mislabeled contracts and regulator-approved documentation changes to disguise Iranian jet fuel imports as diesel.