Gujarat-based Adani Group said it has decided to exit from its investments in Myanmar by next year.
Group company Adani Ports and Special Economic Zone (APSEZ) made the announcement in its quarterly results.
“The board has decided to actively work on a plan on exiting company’s investment in Myanmar, including divestment opportunities (expected to be concluded by March - June 2022),” the firm said.
The company’s risk management committee, after a review of the situation, has decided to work on a plan on exiting the company’s investment in Myanmar, including exploring any divestment opportunities.
No specific reason has been cited by the firm for the decision.
The APSEZ has till now invested $151 million in International Container Terminal at Ahlone Port in Yanon region.
In August this year, the company had said its investment in a port in Myanmar was not in violation of any sanction guidelines issued by the Office of Foreign Assets Control (OFAC) of the U.S. Department of Treasury.
“APSEZ believes that it is not in violation of any sanction guidelines issued by OFAC, and has, therefore, applied to OFAC for a general licence to operate the port,” the company statement said.
Previously, the company had also asserted that it would abandon the container terminal project and write down the investment if there was any violations of the U.S. sanctions.
The company’s assertion had come after a report by the rights group had claimed citing documents purporting to show that an Adani unit would pay up to $30 million in land lease fees for the project to the Myanmar Economic Corporation (MEC), one of two military-controlled entities which were slapped with U.S. sanctions following the military coup.
