Investment in Myanmar port not in violation of US sanctions: Adani Ports

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Adani Ports and Special Economic Zone Limited (APSEZ) on Tuesday said that the company believes that its investment in a port in Myanmar is not in violation of any sanction guidelines issued by the Office of Foreign Assets Control (OFAC) of the US Department of Treasury.

In notes to its first quarter results, APSEZ further said the port is expected to create stable jobs, promote private commercial trade, facilitate the arrival of goods such as food, medicine and clothing for the Burmese people.

"APSEZ believes that it is not in violation of any sanction guidelines issued by OFAC, and has, therefore, applied to OFAC for a general license to operate the Port," it said.

The firm said in addition to the anti-bribery, anti-corruption guideline, the company will utilize the compliance procedures aimed at combating corruption in the Port.

"The company will abide by the guidelines and compliance programme of OFAC while issuing a general licence," it said.

The project had run into controversy after it was reported that APSEZ chief executive Karan Adani had in July 2019 met Senior General Min Aung Hlaing, the army chief who led the coup against the elected government.

Adani group had previously said it had won the Yangon International Terminal project last year through a global competitive bid. The project requires USD 290 million investment.

The land acquisition for the project was facilitated by "the Myanmar Investment Commission led by U Thaung Tun, its chairman and Minister of Investment and Foreign Economic Relations under the guidance of President Aung San Suu Kyi's National League for Democracy government," it had previously said.

APSEZ said it has disinvested its stake in Bowen Rail Operations Pte Ltd. as per the SPA signed on 25th March 25, 2021. "The company realized its 'held for sale investments' in July 2021 amounting USD 25 million, thus the entity is no longer a subsidiary of APSEZ," it said.

Adani Ports and Special Economic Zone (APSEZ), the largest port developer, is a part of the globally diversified Adani Group.