Lobbying Firm to Aid Myanmar in Rebuilding U.S. Ties Amidst Sanctions and Resource Competition

A satellite image provides an overview of the East River rare earth mine in Myanmar.

A Washington lobbying firm, the DCI Group, has entered into a $3 million per year agreement with Myanmar’s Ministry of Information. The purpose of this agreement is to assist the military-ruled country in rebuilding its relationship with the United States. The agreement was signed on July 31, the same day Myanmar's military nominally transferred power to a civilian-led interim government.

Myanmar's leadership, under military chief Min Aung Hlaing, seized power in a 2021 coup. Previously, an Israeli-Canadian lobbyist hired to represent them in Washington ceased his work due to U.S. sanctions. The U.S. Treasury Department, the DCI Group, the U.S. State Department, and Myanmar’s Washington embassy did not immediately respond to inquiries regarding the potential impact of U.S. sanctions on the new agreement.

The formation of the interim government does not signify a change in the status quo in Myanmar. Min Aung Hlaing maintains control as acting president and as chief of the armed forces. He has expressed interest in engaging with the administration.

When the administration threatened tariffs on Myanmar's exports, the general responded by praising the administration's leadership, requesting lower rates, and seeking the lifting of sanctions. He also expressed a willingness to send a negotiating team to Washington.

According to the Foreign Agents Registration Act filing, the DCI Group will provide public affairs services to rebuild relations between Myanmar and the United States, with a focus on trade, natural resources, and humanitarian relief. The filing was signed by DCI managing partners Justin Peterson and Brian McCabe.

Reuters reported that the FBI is investigating the DCI Group over its alleged involvement in a hack-and-leak operation targeting critics of Exxon Mobil. The DCI Group has denied the allegations.

In 2008, two top aides to John McCain resigned after their work with the DCI Group for a previous military junta in Myanmar came to light. Jim Murphy, a former DCI president and managing partner, served as Trump’s national political director during his 2016 campaign.

Myanmar's state media reported the death of Myint Swe, who became Myanmar’s president during the 2021 coup. He had been on medical leave since July of the previous year.

Engaging with the junta would represent a significant shift for the United States, given the existing sanctions on military leaders and the violence against the Rohingya minority. The administration lifted sanctions designations on several junta allies, but officials stated this did not indicate a broader shift in U.S. policy.

The administration has heard competing proposals on ways to divert Myanmar’s supplies of rare earth minerals away from China. Securing supplies of heavy rare earths is a major focus of the administration in its competition with China, which controls nearly 90% of global processing capacity.