EU gives more aid to Myanmar, might scrap sanctions in April

Feb 9, 2012, 11:01 GMT

Brussels - The European Union is set to increase aid to Myanmar by 150 million euros (200 million dollars) and might go as far as scrapping sanctions in April, officials from the bloc said Thursday.

The change in the EU's stance comes in reaction to progress towards democracy in the former military-ruled country. Since last year, opposition leader Aung San Suu Kyi has been released from house arrest, hundreds of political prisoners have been freed and ceasefires have been signed with ethnic militias.

'The momentum of change in Burma/Myanmar is impressive and the EU recognizes the need to do all it can to support the country at this time,' EU Development Commissioner Andris Piebalgs said in a statement, using both names by which the country is known.

The announcement of new EU funding - coming on top of existing aid worth 104 million euros - comes ahead of Piebalgs' two-day visit to Myanmar, starting on Sunday. He is due to meet President Thein Sein, government ministers, Suu Kyi and non-governmental organizations.

In January, EU foreign ministers already decided to waive visa bans on the country's leadership, but sanctions remain on dozens of representatives of the former military regime.

The EU also bans investments in state-owned enterprises, has embargoes in place against arm exports to the country as well as on imports of hard wood, gems and precious metal.

On April 23, EU foreign ministers will 'look at a possible new substantial reduction or even the ending of sanctions,' a diplomatic source in Brussels said. EU Foreign Policy Chief Catherine Ashton intends to visit the country after the move.

The bloc is also planning to open an office in Rangoon, where currently only the four biggest EU members - Germany, France, Britain and Italy - have embassies.

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