Fuel base: Russia and Myanmar are negotiating the construction of a refinery
Russia and Myanmar are negotiating on the technical aspects of the refinery construction, the Russian Embassy told Izvestia. This is especially important for the republic, since its own oil refining covers only 2-3% of demand. At the same time, Myanmar is also interested in supplying Russian oil and energy resources. At the same time, the country is preparing to implement a low-power nuclear power plant project, Rosatom said.
Construction of a refinery in Myanmar with the help of the Russian Federation
The new round of the energy crisis has exposed Myanmar's vulnerability in the fuel sector. The country depends on external supplies of petroleum products, and its own processing of raw materials is poorly developed.
In March, Myanmar authorities introduced gasoline rationing for private cars, and there was an acute shortage of diesel in agricultural areas: it was sold on the black market for more than three times the official price.
"Given that the country's own crude oil refining meets current demand by only 2-3%, it is extremely important to build an oil refinery with our help, the technical aspects of which are currently being negotiated between the participants in this project," the Russian Embassy in Myanmar told Izvestia.
At the same time, the country's interest in energy cooperation with Russia exists regardless of the current crisis, the diplomats noted. The refinery project in Myanmar began to be discussed on February 23, 2025, when Moscow and Naypyidaw signed a memorandum on investment cooperation in the Dawei Special Economic Zone. The document included the construction of a port, a coal-fired thermal power plant and an oil refinery. At that time, Maxim Reshetnikov, the Minister of Economic Development of the Russian Federation, said that a final decision had not yet been made on the refinery and additional work on the project was needed.
Later, on June 20, Moscow and Naypyidaw signed another investment agreement related to projects in Dawei. It covered the port and a 660 MW power plant, and also opened up opportunities for Russian companies in offshore oil and gas projects.
Myanmar is heavily dependent on refined fuel imports from Singapore and Malaysia and has been looking for alternative supply channels in recent months. In the context of the energy crisis, the country's interest in purchasing Russian energy resources, including oil, has noticeably increased, Alexei Chepa, a State Duma deputy and member of the parliamentary group for relations with the parliaments of Cambodia, Laos and Myanmar, told Izvestia.
Washington had previously eased restrictions on maritime shipments of Russian raw materials, extending the corresponding relief twice. The last one is valid until May 16. At the same time, the head of the US Treasury, Scott Bessent, made it clear that there is no question of a complete waiver of sanctions. However, Myanmar is already under strict international restrictions, which reduces the country's sensitivity to new sanctions.
Cooperation between Russia and Myanmar in the energy sector
The Russian Embassy indicated that the parties are also working on other areas of energy cooperation.
— There are also initiatives in the field of small hydropower, wind generation — not without the participation of Rosatom, by the way — there is a demand for joint work in the field of solar energy. These areas are still in the initial stage of development, but their prospects are beyond doubt," the diplomats said.
Nuclear energy remains a major area on the bilateral agenda. Since 2023, Rosatom and Naypyidaw have been negotiating the construction of a low-power nuclear power plant (ASMM). The intergovernmental agreement required for the project was signed on March 4, 2025. It involves the construction of two 55 MW reactors with a possible expansion of the plant to 330 MW.
On September 26, 2025, Rosatom and Myanmar signed a roadmap for cooperation in the field of peaceful atom for 2025-2026. At that time, the Russian media reported on the development of personnel training and the regulatory framework, as well as on the further promotion of the ASMM project.
— Currently, preparations are underway for expert consultations on contract documentation. At the same time, related areas are already actively developing: staff training and education, and the formation of a nuclear infrastructure, the state corporation told Izvestia.
The specific parameters and deadlines for the project implementation will be discussed at the stage of concluding the contract documentation, Rosatom noted. The state corporation expressed confidence that the implementation of the ASMM will become an impetus for job creation, training of highly qualified specialists and economic growth of Myanmar.
Humanitarian aid to Myanmar
After the military coup on February 1, 2021, when the army disrupted the start of the new parliament, detained Aung San Suu Kyi and President Win Myint, and imposed a state of emergency, Myanmar found itself in a state of protracted civil war and a deep humanitarian crisis. According to UN estimates, almost 20 million people need assistance, and about a third of the population is facing severe food shortages.
Western countries have imposed sanctions on military authorities, and the EU recently extended them for another year. Under these conditions, Russia has become one of the few external partners for Naypyidaw with which the republic can build long-term cooperation, including energy cooperation. ASEAN also partially suspended cooperation with Myanmar: military representatives were no longer invited to high—level meetings, and the country's participation in the work of the association was actually curtailed - diplomats were mostly invited to major summits.
In addition to the war, Myanmar has been hit by a series of major natural disasters in recent years. The worst earthquake was in March 2025. More than 3,700 people died, and hundreds of thousands were left without adequate housing and access to basic services.
Before that, the country regularly suffered from powerful cyclones, floods and landslides. In 2023 and 2024, according to the UN, the country experienced severe effects of seasonal rains and storms on rural areas, infrastructure and food supplies.
After the earthquake of 2025, Russia sent the largest search and rescue team and medics to the country in the last five years: more than 260 specialists took an active part in the disaster relief operation. During their work, more than 150 tons of humanitarian aid were delivered to the local population.
In general, Moscow regularly provides assistance to Myanmar on a bilateral basis, as well as through the UN World Food Program, the embassy stressed.
— As part of the activities of this structure, Russian sunflower oil has been supplied to Myanmar for two years in a row. This product is in steady demand here. The cost of each batch is about $2 million," the Russian diplomats said.
Thus, cooperation between Russia and Myanmar goes beyond energy alone: Moscow remains a reliable partner for the republic in many areas, including the humanitarian one.
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