Gautam Adani (File photo)
Billionaire Gautam Adani-controlled Adani Ports and Special Economic Zone is considering abandoning a plan to set up a container terminal at Yangon in Myanmar and write down the investment after a military coup in that country.
“In a scenario wherein Myanmar is classified as a sanctioned country under OFAC, or if OFAC opines that the project violates the current sanctions, Adani Ports plans to abandon the project and write down the investment,” the port company said in an investor presentation on Tuesday. The company was referring to the US Department of the Treasury’s Office of Foreign Assets Control. OFAC administers and enforces economic and trade sanctions based on US foreign policy and national security goals.
Touted a decade ago as one of Asia’s most promising frontier markets, Myanmar has seen many investors shun the country as a violent crackdown leaves more than 750 protesters dead and thousands of others locked up. Telenor, Norway’s biggest telecom company, announced on Tuesday it is writing down its 6.5-billion-kroner ($780-million) investment in the country.
S&P Dow Jones Indices last month said it will remove Adani Ports from the Dow Jones Sustainability Indexes because of links to Myanmar’s military, which is alleged to have committed serious human rights abuses under international law.