PanOrient News | Russia to invest in Myanmar as two countries become closer

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Russia to invest in Myanmar as two countries become closer

Tuesday, March 4, 2025

(Global Light of Myanmar)

PanOrient News

YANGON: Russia and Myanmar have reached an agreement to jointly invest in the Dawei Special Economic Zone – including a deep-sea port and oil refinery – according to a report in the Statesman.

News reports indicated the signing took place at the fifth Myanmar-Russia Intergovernmental Trade and Economic Cooperation Commission session, which was held in Myanmarlast month and featured senior government officials of the two countries. Russia's Economic Development Minister Maxim Reshetnikov and Myanmar's Minister of Investment and Foreign Economic Relations Kan Zaw signed the agreement.

The Dawei Special Economic Zone stretches along the eastern seaboard of Myanmar in the Andaman Sea and spans 196 square kilometers. The ambitious project will construct high-tech industrial estates, transport hubs, information technology parks, and export processing zones, turning Dawei into an important driver of regional economic growth.

The Dawei port in Myanmar's Tanintharyi region is set to become a major gateway for trade not only in Myanmar, but also for the broader Greater Mekong subregion, which includes Cambodia, Laos, Thailand, Vietnam and China.

The plans for Dawei port foresee a handling capacity of 10 million tonnes and an oil refinery that can process 100,000 barrels of oil per day.

Russia has emerged as one of Myanmar's closest allies, providing diplomatic backing at a time when it is shunned by many countries critical of its military junta.

Myanmar has been increasingly reliant on Russian imports of oil since 2023. The collaboration has even extended into defense, as the two nations have intensified mutual cooperation in the form of naval base visits, maritime security exercises and increased defense cooperation.

The two governments are now looking to expand their energy cooperation, including the construction of a gas pipeline to Yangon and the establishment of a nuclear research center for electricity generation.

Beyond Myanmar, Russia is pursuing other infrastructure projects in the region. including a significant military and development project in Laos. Russia is building an airport and military base in Laos, further increasing its strategic ties with the country.