Russia Strikes Energy Investment Deal with Myanmar Junta

CINCDS, archives

Russia has signed a fresh investment agreement with Myanmar’s military government, opening the door for Russian firms to explore offshore oil and gas projects in the conflict-stricken country.

The deal was announced on Friday during the St. Petersburg International Economic Forum, where Russian Economy Minister Maxim Reshetnikov praised Myanmar’s “readiness” to involve Russian companies in developing offshore energy resources. He signed the agreement alongside Kan Zaw, Myanmar’s minister of investment and foreign economic relations.

It marks the latest step in deepening economic ties between Moscow and Naypyidaw, as both governments face growing isolation from the West. The agreement is expected to boost Russian involvement in key infrastructure projects, notably within Myanmar’s Dawei special economic zone, where a coal-fired power plant and plans for a new port and oil refinery are already underway.

Friday’s accord also outlines cooperation in sectors including transport, agriculture, metallurgy, and telecoms.

Myanmar has been under military rule since a 2021 coup ousted the elected civilian government of Aung San Suu Kyi. The junta now faces widespread resistance, economic collapse, and a spiralling humanitarian crisis, with a third of the population requiring aid, according to the United Nations.

Despite international sanctions and criticism, Russia has continued to back the junta, supplying arms and signing deals ranging from nuclear energy to infrastructure. In March, junta leader Min Aung Hlaing met with President Vladimir Putin and finalised an agreement to build a small-scale nuclear plant in Myanmar.

Analysts view Russia’s growing presence in Myanmar as part of a broader strategy to strengthen ties with regimes shunned by Western powers, while securing new markets for its energy and industrial sectors.

The latest deal may offer Moscow commercial gains—but it also signals continued support for a regime accused of war crimes and repression, deepening concerns over how foreign investment is being used to entrench authoritarian rule.

-2025-06-21