Myanmar and Russia Sign Investment Cooperation Memorandum for Port and Oil Refinery
Myanmar and its close ally Russia have signed a memorandum on investment cooperation in a special economic zone in Dawei, which includes the construction of a port and an oil refinery, as announced by Russia’s Ministry of Economic Development on Sunday.
The memorandum was signed by Maxim Reshetnikov, the head of the Russian ministry, and Kan Zaw, Myanmar’s Minister for Investment and Foreign Economic Relations, during a visit by a Russian delegation to the Southeast Asian nation.
According to Reshetnikov, the memorandum outlines the key parameters of several large infrastructure and energy projects being jointly implemented with Russian companies in Myanmar. These projects include the construction of a port, a coal-fired thermal power plant, and an oil refinery.
Reshetnikov noted that oil refining remains the most complex aspect of the projects, and a final decision on the construction of the refinery has not yet been made. He mentioned that while there is interest from the Myanmar side in having a refinery, Russian companies are still evaluating the economic feasibility of such a project, which is quite complicated.
The Dawei special economic zone, as described by the Russian ministry, covers an area of 196 square kilometers in the Andaman Sea and is intended to host high-tech industrial zones, transport hubs, information technology zones, and export processing zones.
Since the military coup that ousted Aung San Suu Kyi’s elected government in February 2021, Russia has emerged as Myanmar’s closest ally. Moscow and Naypyidaw are also discussing deeper energy cooperation, including Russia’s involvement in the construction of a gas pipeline to Yangon, Myanmar’s main city. Additionally, Russia has plans for a nuclear research reactor in the country.
