Russia looking to agree with Myanmar to maintain its companies' majority stakes in joint projects - economic development minister

MOSCOW. Aug 19 (Interfax) - The relevant negotiations are currently underway between Russia and Myanmar to ensure that Russian companies participating in investment projects in the latter country receive majority stakes during the payback period as one of the conditions, Russian Economic Development Minister Maxim Reshetnikov said.

"Russian businesses have set another objective for us that we are negotiating, which is to enable our businesses to invest and maintain a majority stake in any given project during the payback period. This is necessary for Russian banks to finance projects in Myanmar and, accordingly, attract their own capital, as well as debt financing. I am confident that we will find a mutually acceptable solution to the matter," Reshetnikov said at the Russia-Myanmar business forum.

The decision is important within Russia's plans to participate in the project to develop the Dawei Special Economic Zone (SEZ) that envisages constructing a deep-water port, a coal-fired power plant, and an oil refinery, Reshetnikov said.

"Myanmar should have a solid, modern deep-water port and energy infrastructure as a power plant with projected capacity of 660 MW owing to the SEZ. We are also designing and discussing the financials to construct an oil refinery there. There is also a fairly large amount of production warehouse space planned," Reshetnikov said.

Reshetnikov said that Russia and Myanmar already have a successful joint investment project, namely constructing an organic fertilizer plant with the Roscongress foundation.

"Construction is progressing rapidly, and we expect the plant to begin producing products early next year," he said.