The United States has removed sanctions against Theint Win Htet, the daughter of a Myanmar businessman accused of supplying fuel to the country’s military, following a legal challenge against the restrictions.

The US Department of the Treasury removed her name from its sanctions list on Friday, according to its website. The decision came after she filed a second lawsuit in July, arguing that she had no involvement in her father’s business.

According to Al Jazeera, the move comes as US President Donald Trump’s administration has reportedly opened talks with Myanmar’s military-installed government, marking a shift from Washington’s policy of sanctioning military leaders following the 2021 coup.

In January 2024, the Treasury Department imposed sanctions on the Shwe Byain Phyu Group of Companies, founded by Theint Win Htet’s father, Thein Win Zaw, and his family. The department accused the group of supplying fuel to the military and said it owned at least 20 companies with close links to the country’s military leadership.

Theint Win Htet initially challenged the sanctions in a lawsuit against the administration of former President Joe Biden. That case was dismissed last year, prompting her to file a second complaint in July.

The sanctions had restricted her access to US credit cards and foreign bank accounts and forced her to abandon her master’s degree at Columbia University in New York. She now lives in Thailand with her mother, who was removed from the US sanctions list last year.

Following Friday’s decision, her lawyer, Washington-based sanctions specialist Erich Ferrari, filed a notice with a federal court in the US capital seeking to voluntarily dismiss the lawsuit.

The move has drawn criticism from Justice For Myanmar, an activist group that monitors the military’s finances and business networks.

“It is deplorable that the US government continues to delist Myanmar cronies and their family members that provide funding for the junta’s terror,” the group said, accusing Washington of easing pressure while the military continues attacks on civilians.

The United States imposed sanctions on Myanmar’s military officers and affiliated businesses after the February 2021 coup that ousted the country’s democratically elected government. The takeover triggered a nationwide armed conflict that has killed about 100,000 people and displaced more than 3.5 million, according to the figures cited in the report.

Washington also lifted sanctions in July last year on several other Myanmar nationals and a company accused of assisting the military.

The latest decision comes as questions persist over the US approach to Myanmar, where the military continues to face resistance from pro-democracy forces and ethnic armed groups.

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