Adani Ports decide to abandon its Container terminal project at Yangon Myanmar

The Adani Ports and Special Economic Zone has decided to abandon its container terminal project at Yangon and cancel all its investment in the project if Myanmar is classified as a sanctioned country by the United States for running a military government according to media reports.

Adani Ports' statement comes following reports that Norwegian pension fund KLP is divesting its stake in the company as its links with Myanmar military breaches the fund's responsible investment policy.

Adani Ports criticized by international investors for its plan for a container terminal in Yangon, Myanmar

Adani Ports, which is India's largest port operator, has been facing criticism from various international investors over its plan to construct a container terminal in Yangon, Myanmar, on land leased from a Myanmar military-owned conglomerate.

"The Company is in discussion with its US-based counsels to ensure that the Company complies with the OFAC [Office of Foreign Assets Control] sanctions programs. In a scenario wherein Myanmar is classified as a sanctioned country under the OFAC, the company has plans to abandon the project and will write-down its investments in the project in full," Adani Ports said in a filing. the reports said

Adani Ports is unable to comment on the divestment made by the KLP Fund "as the Funds decide the investment plans basis their internal policy", it added. Adani Group has time and again refuted reports of it engaging with Myanmar's military leaders over the $52 million-port deal.

US sanctions

United States had imposed economic sanctions on state-owned Myanmar Economic Corporation (MEC) earlier this year following the military's detention of elected leaders and seizing power in a coup.