Rangoon (Mizzima) - With several Russian firms directly investing or having businesses interests in Burma and with the closer cooperation between the two countries, a Rangoon based observer said, Russia is likely to emerge as a major investor in the near future in the Southeast Asian country.
The observer, who closely follows Russian-Burmese relationship, said since about eight years ago Russia's private and public enterprises slowly emerged in Burma and began investing and operating businesses in sectors including gold and copper mining, onshore-offshore oil and gas explorations, steel manufacturing and even had a finger in garment and the fisheries industries.
Of the many businesses ventures in cooperation with Russian enterprises are the prominent Russian Oil and Natural Gas Company Silver Wave Sputnik Petroleum Pte Ltd., Victorious Glory International Pte Ltd., and Technoprom Exports of Russia.
Russia's Oil and Natural Gas companies had conducted two onshore and two offshore projects, with each project estimated to be valued at between US$ 30 million to US$50 million, the observer, who declined to reveal his identity for fear of reprisal told Mizzima.
"As a principle, the military government [of Burma] does not allow any foreign company to be involved in onshore exploration and production. But the Russian case is an exception," the observer said.
Another important project the US$160 million development of a steel manufacturing facility by 'Technoprom Exports' of Russia is also nearly complete in southern Shan State.
According to the observer, the project, which has a capacity of producing 200,000 tonnes of cast iron per annum, is expected to be commissioned in early 2009 and that the iron produced would be fed to a steel mill run by the Myanmar Economic Corporation (MEC), a major business undertaking of the army based in Myingyan of Mandalay Division.
The facility located in the town of Pingpet in southern Shan State, will have a commercial-scale coal-powered generator that produces 65 megawatt of electricity. The coal will be transported to the plant from Tigyit coal mine, Burma's biggest coal mine located in Tigyit village of Pinlong Township, about 22 miles south of Kalaw town in Southern Shan State.
The observer said Russia is likely to emerge as a major investor in Burma, because it is one of the foremost world powers. Burma's military rulers are seeking stronger support by giving them secret business deals in the country.
While Burma has publicly declared that it maintains a policy of non-alignment, it is apparent that Burma needs an alliance with some major power like Russia, in order to survive in the long run in the international arena, he added.
Meanwhile, another informed industrial source claims that a Russian firm is now seeking business deals in Burma's garment and fisheries industries. "A Russian firm, yet be identified, plans to set up and run a garment factory in Rangoon, that will manufacture bullet-proof jackets," the source said. However, the information could be independently verified.
