Russia and Myanmar have signed a memorandum of understanding for investment cooperation within the Dawei Special Economic Zone (SEZ), according to Russia's Ministry of Economic Development. The agreement outlines plans for the construction of a port and an oil refinery.
The memorandum was signed by Maxim Reshetnikov, head of the Russian ministry, and Kan Zaw, Myanmar's Minister for Investment and Foreign Economic Relations, during a Russian delegation's visit to Myanmar.
"The text of the memorandum contains the basic parameters of several large infrastructure and energy projects that are being implemented jointly with Russian companies in Myanmar," stated Reshetnikov. "We are talking about projects to build a port, a coal-fired thermal power plant and an oil refinery."
Reshetnikov noted that "oil refining is still the most complex element," and that a final decision on the refinery's construction has not been made. "As for the refinery — there is a desire of the Myanmar side to have a refinery. Our companies are still studying the economics of such a project, it is very complicated from the point of view of economic feasibility," he explained, as cited by Interfax news agency.
The Dawei SEZ, a 196 square-kilometer project in the Andaman Sea, is intended to house high-tech industrial zones, transport hubs, information technology zones, and export processing zones. Since the February 2021, Russia has strengthened its alliance with the country. Discussions between Moscow and Naypyidaw have included deeper energy cooperation, specifically Russia's involvement in the construction of a gas pipeline to Yangon and plans for a nuclear research reactor.
The Ministry of Economic Development of Russia is responsible for the formulation and implementation of the Russian government's economic policy.