Russia’s Putin and Myanmar regime leader discuss expanded energy ties as ruble transactions grow

Russian President Vladimir Putin has disclosed that around two-thirds of business transactions between Russia and Myanmar are now conducted in Russian rubles, while outlining plans for greater Russian involvement in Myanmar’s oil, gas, and electricity sectors. Putin revealed the details following talks with Myanmar regime leader Min Aung Hlaing at the Kremlin on Tuesday. The trip is Min Aung Hlaing’s first to Russia since assuming the title of “president” following controversial elections held earlier this year and the establishment of a military-dominated parliament largely controlled by former generals and allies of the regime. Russia and Myanmar have established financial settlement mechanisms and approximately two-thirds of their business transactions are now conducted in rubles, Putin said in an official statement published by the Kremlin. The figure provides a rare indication of the extent to which bilateral commerce has shifted towards Russia’s currency. Like Russia, Myanmar has been hit with a raft of economic sanctions imposed by the United States and other Western governments, in Myanmar’s case in response to the 2021 military coup and the regime’s subsequent violence against civilians. As sanctions have restricted access to Western financial channels, Myanmar’s military authorities have promoted the use of alternative currencies, including the Russian ruble and Chinese yuan, for international trade and cross-border payments. Putin also disclosed that Russian companies were prepared to participate in hydrocarbon exploration and production in Myanmar, including on the country’s continental shelf. Moscow is considering supplying Russian liquefied natural gas (LNG) to Myanmar, including for onward delivery to third countries, according to the Kremlin statement. The Russian government and Myanmar’s military regime are also considering the construction of an oil refinery and power-generating facilities in Myanmar. Putin said Russian companies were interested in major infrastructure projects, including a proposed Dawei deep-water port on Myanmar’s southern coast. Russia and Myanmar also agreed to continue cooperation in nuclear energy, an area in which the two countries already have several publicly announced projects. The new energy proposals would expand Russian involvement from existing cooperation into upstream oil and gas exploration, LNG supplies, and additional energy infrastructure. Following Tuesday’s talks, the two sides also exchanged a declaration on measures intended to limit the effects of international sanctions. Russian Foreign Minister Sergei Lavrov and his Myanmar counterpart exchanged the declaration on methods for “countering, mitigating, and compensating” for the negative effects of unilateral coercive measures, according to Russian news agency Interfax. The agreement, together with Putin’s disclosure about the scale of ruble transactions, provides new details about efforts by the two regimes to conduct trade despite restrictions affecting their access to international financial systems. Russia has become one of the Myanmar military’s most important international partners since the 2021 coup, supplying weapons and military equipment, training Myanmar military personnel, and maintaining close ties with its senior leadership. Min Aung Hlaing has made seven visits to Russia since the coup, cultivating Moscow as one of his regime’s most important allies alongside China, while the military authorities have increasingly turned to Russia for military hardware, officer training, and fuel supplies. Putin said Tuesday that the two countries maintain regular defence ministry contacts, conduct joint naval exercises, and host visits by Russian Navy vessels. The cooperation has also expanded to joint training on land: in July, around two dozen Russian military personnel took part in the nearly two-week Tiger-2026 exercise with Myanmar forces in Naypyitaw, involving demonstrations of Russian-made firearms, drones, and other military equipment. Russia’s defence ministry described it as the first joint “training and methodological gathering” involving Russian and Myanmar special forces. The relationship has also recently expanded into government digital infrastructure. On August 12, the junta-controlled Customs Department signed a contract with the Myanmar branch of Astra Consulting LLC, a subsidiary of Russia’s Astra Group, to develop Myanmar’s National Single Window Web Portal Project. The system is intended to process import and export documentation, link government agencies involved in foreign trade, and eventually connect with the ASEAN Single Window. The contract had not been publicly announced by the Myanmar authorities before details emerged from the Russian side.

Russia’s Putin and Myanmar regime leader discuss expanded energy ties as ruble transactions grow

Two-thirds of bilateral business transactions are now conducted in Russian rubles as Moscow eyes Myanmar’s offshore hydrocarbons, LNG market and new energy infrastructure

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