Safe rapprochement: Myanmar intends to become an observer at the EAEU
Myanmar is interested in observer status in the EAEU, the Ministry of Investment and Foreign Economic Relations of the country told Izvestia. Cooperation with the Russian Federation is also progressing in a bilateral format. Three local commercial banks have already switched to payments in rubles and kyats, and they are increasing cooperation between the financial systems of the two countries. In addition, Russian companies may localize production in Myanmar, the head of the department, Kang Zo, told Izvestia. See the Izvestia article about other areas in which Moscow and Naypyidaw can strengthen cooperation.
Myanmar wants to join the EAEU and BRICS
Myanmar intends to become an observer at the Eurasian Economic Union, a representative of the Ministry of Investment and Foreign Economic Relations of Myanmar told Izvestia. He recalled that in 2023, the Eurasian Economic Commission and the Government of Myanmar signed a memorandum of cooperation, and a joint working group was established.
— At the moment, we are going to become an observer in the EAEU. We have already signed a Memorandum of Cooperation. Then we had already created a joint working group. Then we will move step by step towards this goal," a representative of the department told Izvestia.
Cooperation with the organization was also discussed during talks between Russian President Vladimir Putin and Myanmar Prime Minister Min Aung Hlaing on March 4. This is the 11th visit of the Myanmar leader to Moscow. In total, 10 different documents were signed at meetings with the Russian leadership, including Prime Minister Mikhail Mishustin.
The parties stated that they were satisfied with the progressive development of cooperation between the EAEU and Myanmar. Recall that the observer status at the EAEU is assigned by the decision of the Supreme Council of the association. Currently, this category includes Moldova, Iran, Cuba and Uzbekistan. In addition to this format of cooperation, there is the possibility of creating a free trade zone. Currently, FTA agreements are in force, for example, with Vietnam and Serbia.
It is indeed possible to integrate Myanmar into the EAEU through a free trade zone. However, this is rather a distant prospect that has not even been discussed yet. First, it is necessary to increase trade, not only with Russia, but also with other EAEU countries — work in this direction is already underway, Ekaterina Koldunova, director of the MGIMO ASEAN Center, told Izvestia.
— We would also like to join the BRICS. Because it is also a very powerful association, we have a chance. Myanmar is striving step by step to become a member of the BRICS," said a representative of the Myanmar Ministry of Investment and Foreign Economic Relations.
Naypyidaw's involvement in the BRICS is probably more likely, but it will depend not only on the state of Russian-Myanmar relations, but also on the position of all other participants in the association, Ekaterina Koldunova believes.
Russia and Myanmar are working on localization of production
So far, the Russian Federation and Myanmar are actively increasing cooperation in a bilateral format. The republic's authorities are inviting Russian businesses to localize production, as well as use their resource base in agriculture and energy, Myanmar's Minister of Investment and Foreign Economic Relations Kang Zaw told Izvestia.
— Russian investors and manufacturers can create products in Myanmar and then export them here (to Russia. — Ed.). This applies not only to agriculture, but also to the small and medium-sized business sector and other industries, especially energy, in particular, liquefied natural gas. As we have already announced, both countries have reached an agreement on investment promotion and protection. We will fully ensure the protection of your investors," Kang Zo told Izvestia.
In the first 11 months of 2024, the trade turnover between Russia and Myanmar increased by 40%, almost 1.5 times, due to the expansion of the range of exports and imports. Russia exports mineral fertilizers, petroleum products and medicines to Myanmar, while Myanmar exports rice, fruit jams, textiles and footwear to Russia.
Russian companies are already developing production in the republic. In December 2024, the RK-Investments fund, together with a subsidiary of the Russian-Myanmar company Ruma Organic, opened a Center for the introduction and sale of fertilizers in Myanmar. During the visit of the Myanmar delegation in early March, Moscow and Naypyidaw agreed to build plants for the production of organic fertilizers, an iron smelter, nuclear power plants and solar power plants. Russia will also invest in the construction of a deep-water port, a coal-fired power plant, an LNG terminal and an oil refinery in the Dawei Free Economic Zone, which is likely to become the largest industrial zone in Southeast Asia.
Myanmar has its own gas, which is supplied, for example, to China. However, as the country's own consumption grows, it will have to increase external supplies, including LNG. Rosatom State Corporation and Rushydro have expressed interest in local projects. Moscow already provides 90% of the country's oil supplies. Against this background, Myanmar's interest in cooperation with Russia in the energy sector is growing.
— Myanmar needs a major infrastructure upgrade. Russia is acting as an alternative to China and the West here, so the republic is interested in this," Stanislav Mitrakhovich, a leading expert at the National Energy Security Foundation and the Financial University under the Government of the Russian Federation, told Izvestia.
Production in the fields of industrial assembly and the garment industry is also the most promising for localization. But this requires a more thorough acquaintance of Russian manufacturers with Myanmar legislation and the specifics of the labor market, Ekaterina Koldunova summarized.
Cooperation on the issue of human resources is another area of cooperation between Russia and Myanmar. In Primorsky Krai, one of the companies has already attracted Myanmar people to work: they are due to arrive in April. A three-month probation period will be established for Myanmar workers, during which their professional training and language skills will be assessed.
When will Myanmar and Russia switch to paying in national currencies
The gradual transition to settlements in national currencies has a positive effect on economic relations between Russia and Myanmar. The central banks of the two countries have signed the necessary agreements, and three commercial banks in the Asian country have already switched to payments in rubles and kyats. The financial system is currently being adjusted, Kang Zo told Izvestia.
— Yes, the payment system is very important, it is a priority sector for our cooperation. Agreements between the central banks have already been signed, and an umbrella system has been built. Three of our commercial banks have signed an agreement to switch to the exchange of rubles and kyats. To some extent, the financial system is connected, and the final setup is underway," the minister noted.
In February 2025, a Russian delegation headed by Minister of Economic Development Maxim Reshetnikov visited Naypyidaw, where the fifth intergovernmental commission on trade and economic cooperation was held. Following the meeting, the banks of Russia and Myanmar switched to mutual opening of direct accounts of companies in banks.
Cooperation is developing on other tracks as well. For example, the parties agreed to open two more consulates in Russia — in St. Petersburg and Novosibirsk. In addition, an agreement was signed on the recognition of diplomas and academic degrees.
The internal political situation in Myanmar remains difficult. In February 2021, the military carried out a coup, as a result of which General Min Aung Hlaing was appointed Prime Minister. Supporters of the ousted de facto leader Aung San Suu Kyi have turned to guerrilla warfare. The Government of Myanmar does not control all areas of the country, and the struggle against armed supporters of the overthrown government in the republic continues. To stabilize the situation in Myanmar, preparations are underway for the elections, which are scheduled for November 2025.
In general, Myanmar may become another "gateway" for Russia to Southeast Asia. Naypyidaw is already involved in organizing Russia's work with ASEAN, President Vladimir Putin emphasized. The country is interested in participating in the EAEU and BRICS, and cooperation in the economic and humanitarian fields is developing. The field of IT solutions for information security, economic and socio-humanitarian projects is also becoming a promising area, Ekaterina Koldunova summarized.
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