Chevron pulling out of Burma

Proposed sanctions introduced in the US House of Representatives would pressure US energy giant Chevron to pull its investment from Myanmar, which rights activists say is helping prop up the ruling military junta.

Under the strategy, similar to one used against US companies during the anti-apartheid campaign in South Africa, the legislation introduced Thursday would end tax write-offs enjoyed by Chevron on revenues earned from its natural gas project in Myanmar.

Chevron will also be barred from making any payments to the junta from its joint venture with French oil giant Total, Thailand's PTT Exploration and Production, and MyanmarÂ’s Myanma Oil and Gas Enterprise operating the lucrative Yadana gas fields, congressional aides said.

The sanctions were introduced as part of a package of new US measures aimed at punishing the military regime for its recent crackdown on pro-democracy protests led by Buddhist monks that left at least 13 people dead and 3,000 detained.

Under US law, "no deduction or credit against tax shall be allowed ... with respect to amounts paid or incurred with respect to" the junta or joint production agreement of the Yadana gas project, a copy of the proposed legislation reads.

Neither US citizens or US institutions can make any "direct or indirect payments of any tax, cancellation penalty, or any other amount" to the junta, according to the measure, known as the Block Burmese JADE (JuntaÂ’s Anti-Democratic Efforts) Act of 2007.

The proposal was introduced by Tom Lantos, chairman of the House Foreign Affairs Committee.

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