The decision by Myanmar's ruling junta to choose Russia for the construction of a Dawei deep seaport on the country's east coast has angered China, which had also been considering building the port near the Thailand border.

It has been learned that the Myanmar junta is interested in having Russian investment in the port project, along with the establishment of a special economic zone that includes an oil refinery.

China had previously conducted a feasibility study of the Dawei port but decided to focus on building the Kyakphyu deep seaport, which is near the Sittwe port built by India. However, the junta's preference for Russia has displeased the Chinese, according to experts familiar with Myanmar affairs.

The proposed Dawei port, located in the Tanintharyi region on Myanmar's east coast along the Andaman Sea, serves as the gateway to the Greater Mekong Sub-region (GMS), comprising Cambodia, Laos, Thailand, Vietnam, and China. It could also potentially serve as a gateway port for Thailand's containerised trade, as Bangkok is approximately 300 kilometers away from Dawei, connected by a two-way concrete road.

It has been revealed that Myanmar and Russia are currently in discussions regarding the proposed port, as the junta aims to align itself more closely with Moscow to counterbalance Chinese influence in the resource-rich country. Discussions include plans to construct the Dawei port with a capacity of 10 million tonnes and an oil refinery capable of processing 100,000 barrels per day. However, Beijing is concerned that Russia's involvement in Myanmar's port sector will undermine Chinese projects in Kyaukphyu within the broader context of global trade in the region.

India may view Myanmar's growing alignment with Russia more favorably than its ties with China, as China has been utilizing Myanmar for accessing natural resources and expanding its presence in the Bay of Bengal region, where India has historically played a significant security role. Submarines previously provided by India to Myanmar have Russian origins. Additionally, in Sri Lanka, Indian and Russian companies have formed a joint venture to manage an airport near the Chinese-managed Hambantota port.

Earlier in March, it was reported that Myanmar's junta sought to decrease its reliance on Beijing and was looking to expand ties with Russia for military supplies and the development of infrastructure and energy projects.

Myanmar's Minister of Investment and Foreign Economic Relations, Dr Kan Zaw, recently visited Moscow to explore opportunities for port development, the establishment of a special economic zone, the construction of a petroleum refinery, a 660 MW thermal power plant, and a 330 MW nuclear power plant. Additionally, efforts were made to promote trade settlement in national currencies.