Adani Ports said on Wednesday it was abandoning plans to build a container terminal in Myanmar, weeks after applying for a US license for the project, believing it does not violate sanctions.
A military coup in Myanmar in February and an ensuing crackdown on mass protests that have killed hundreds have drawn international condemnation and sanctions on military figures and military-controlled entities.
“The Company’s Risk Management Committee, after reviewing the situation, has decided to work on an exit plan from the Company’s investment in Myanmar, including exploring any opportunities for disinvestment,” Adani said in a statement. ” Plan.
The company expects a complete exit from investments in the struggling South Asian country between March and June next year.
The port operator said in August it had asked the United States Office of Foreign Asset Control (OFAC) for a license to operate the Myanmar container terminal.
Adani said in May that it would abandon Myanmar’s container terminal project and write off investments if found to be in violation of US sanctions.
The company, which had invested $127 million, including an upfront payment of $90 million for the leased land, said in May, adding the write-down would not have a material impact as the project would only contribute to the company’s net assets. is 1.3 percent.
Adani won the bid last year to build and operate the Yangon International Terminal, which it said is an independent project entirely owned and developed by the company.
A March report released by two rights groups cited documents showing that an Adani entity would pay up to $30 million in land lease fees for the project to the Myanmar Economic Corporation (MEC), which was subject to US sanctions. It is one of two military-controlled groups under the
Adani did not comment on the lease payments detailed in the report at the time, but later said it had a “zero-tolerance policy on sanctions”.