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The Russian President, Vladimir Putin, is set to meet with the Myanmar Prime Minister Min Aung Hlaing, who is on an official visit to Russia, on Tuesday (March 4).
Amid the re-orientation of trade from the West to Asian markets, Russia has been expanding its trade and, to some degree, investment ties with South Asian countries. Among them, Myanmar stands out as a promising market for Russian companies that are willing to fill in the niche created by the fleeing of major Western companies also from Myanmar. The Western sanctions imposed on Russia pushed the latter to re-assess its approach to Southeast Asia. With limited trade and investment relations in pre-2022, Moscow has since then re-invigorated bilateral political and economic ties with Naypyidaw.
This expansion fits into the overall Russian thinking toward foreign trade but also serves as preparation for further growth of commercial ties with South and Southeast Asia especially given the fact that Myanmar is a significant member of ASEAN. Myanmar also enjoys direct access to China, India, and ASEAN countries through ports in the Bay of Bengal and the Andaman Sea. Myanma has also applied to join the BRICS group as an observer. In a cultural first, a Russian Orthodox Church has been approved to be built in Yangon.
Myanmar is the largest country by area in mainland Southeast Asia at 676,579 km2 and has a population of about 55 million. It is under sanctions, with a history of military juntas rising to overthrow democracies seemingly unable to deal with Islamic insurgents in the north. Battles with the dispossessed Rohingya factions continue. Myanmar has a GDP (PPP) of about US$284 billion, a GDP (PPP) per capita of about US$5,200, with a GDP growth rate for 2025 estimated at 1%.
The progress in bilateral trade between the two countries has been impressive. In 2020-21 it stood at US$15.7 million, during 2024, with an erratic annual trajectory, had increased to about US$288 million. Myanmar’s Ministry of Commerce projects that the trade between the two countries has the potential to increase to US$1 billion.
Russia’s exports to Myanmar mainly consist of hard coal, three-component fertilizers, diammonium phosphate, refined sunflower oil, ammonium sulfate, anthracite, bulk semi-finished products, and products made of unvulcanized rubber, except tread blanks. The top Russian imports from Myanmar include men’s and women’s outerwear, and footwear. Russia has also expressed interest in Myanmar’s energy sector, with Myanmar expressing interest in importing LNG and other energy resources from Russia. Myanmar is also interested in expanding the presence of Russian oil and gas companies. Myanmar has significant reserves of unexplored oil, natural gas, minerals and forest resources. This sector has traditionally attracted a significant portion of FDI into the country and has also made a significant contribution to GDP and the growth of exports.
In June 2023 a memorandum of cooperation was signed between the Eurasian Economic Commission (EEC), the directive body of the Eurasian Economic Union (EAEU), and Myanmar which aims at increasing cooperation in such areas as regional economic integration, customs regulation, energy and transport.
Related to this, in September 2023, direct air traffic between Russia and Myanmar resumed after a 30-year break and the two countries also signed a memorandum of understanding on tourism development the same month. Myanmar has also announced plans to join the Russian equivalent of SWIFT (SPFS) and in June the country’s officials proposed using the Chinese RMB Yuan and Ruble in settlements between the two countries.
Despite economic sanctions affecting both countries, the overall bilateral trade trends between Russia and Myanmar remain positive. During Putin’s meeting with Min, the two parties will discuss prospects for further development of mutually beneficial Russian-Myanmar cooperation, as well as topical international issues. Following the talks, it is planned to adopt a joint statement and sign a number of intergovernmental and interdepartmental documents. We will feature the outcomes on this website. To obtain a complimentary subscription to Russia’s Pivot To Asia and keep abreast of such developments, please click here.
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