Intense fighting in the area is increasing doubts about the Myanmar junta’s ability to secure Russian investment to resume the stalled deep seaport and special economic zone (SEZ) project in Dawei, Tanintharyi Region.
Locals and anti-regime activists in Dawei insist the junta lacks the authority to invite foreign investment since it is not a legitimate government but rather a group of “armed terrorists.”
“While it may attempt to engage Russia as a close ally, I doubt it will be successful given that these areas remain within revolutionary territory,” said Ko Moe Sat, a member of the Dawei Movement Strike Committee.
The Dawei port project and Special Economic Zone (SEZ) are currently the focus of frequent clashes between junta troops and resistance groups, according to locals.
However, junta chief Min Aung Hlaing told Russia’s ITAR-TASS media agency on March 18 that his regime was seeking Moscow’s help to kickstart the port project.
“We are holding discussions with Russia over the project,” said the junta boss, adding the port would have capacity for vessels exceeding 200,000 tons.
The Dawei SEZ and port project is located on land surrounding Nabule village in Yebyu Township.
The project was launched with a 2008 memo of understanding between Thailand and Myanmar in which the previous junta granted Italian-Thai Development a 75-year concession to construct the port-SEZ and attract investment.
Another MOU was signed in July 2012 and the two countries agreed later that year to complete the project by 2015.
However, after numerous delays over the past decade, the Dawei Special Economic Zone Management Committee announced the cancellation of contracts with Italian-Thai Development in January 2021, just one month before the coup in Myanmar.
The committee cited repeated delays, ongoing breaches of financial obligations, and the contractor’s failure to confirm its financial capacity for project development.
Junta forces in Yebyu and neighboring townships are now enduring frequent coordinated attacks by local resistance groups and Peoples Defense Forces (PDFs) under the civilian National Unity Government.
Residents report that junta troops are facing significant resistance in the project zone and its surrounding areas, indicating that anti-regime forces now exert greater control in the region.
PDF and local resistance forces said they attacked the only junta outpost in the zone, at Muu Duu village near Nabule, on May 5.
“Around 20 junta troops and a few police officers were stationed at the outpost,” said a resistance member based in Dawei.
“After we defeated the junta troops, we set fire to the outpost.”
A researcher with knowledge of the project said it would be impossible for Russia to lead Dawei port development while the area is under conflict.
“The area is a PDF stronghold. Nabule is very close to Dawei city and has been bombed by [junta] fighter jets, which shows the strength of resistance there,” he said.
He added that Moscow also had little strategic interest in investing in Dawei as a naval base in Southeast Asia given that Russia is struggling even to control the Black Sea.
