Русский
Maxim Reshetnikov, the Russian Economic Development Minister and Kan Zaw, Myanmar’s Investment and Foreign Economic Relations Minister have signed a memorandum on investment cooperation in Myanmar’s Dawei Special Economic Zone.
The document was signed at the fifth intergovernmental Russian-Myanmar commission for commercial and economic cooperation during the Russian delegation’s official visit to Naypyidaw, Myanmar’s capital city.
Reshetnikov said “The MoU contains the parameters of several major infrastructure and energy projects implemented in Myanmar in cooperation with Russian companies. These include projects to build a port, a coal-burning thermal power plant, and an oil refinery. The feasibility study regarding the cargo port is already underway, there are potential investors both ours and from the other side. Everyone understands that the port is in demand. The work on the thermal power plan is currently ongoing, an agreement on the feasibility study is being drafted. It is also a promising matter, Myanmar has their own coal, and Russia could always import ours. We will discuss the plant’s capacity, the construction of power transmission lines and other matters. As for the oil refinery, the Myanmar side wishes to have its own oil refinery. Our companies are still studying the economic viability of this project. We are requesting additional consultations to understand the size of the market, and the potential export capabilities.”
Russia-Myanmar bilateral trade has been increasing and reached about US$288 million last year. 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.
The Dawei Special Economic Zone in Myanmar covers 196 square kilometers in the Andaman Sea. High-tech industrial areas, transport hubs, IT and export processing zones are planned to be operated there. Myanmar is a member of the ASEAN bloc, which also includes neighbouring Thailand and is a major market. Myanmar is also a member of the BIMSTEC free trade area which additionally includes Bangladesh and India.
Further Reading
