Adani Ports and Special Economic Zone Ltd (APSEZ) on Tuesday (4 May) clarified that it could abandon the container terminal project in Myanmar and write down the investment if it is found to be violating sanctions imposed by the United States.

"In a scenario wherein Myanmar is classified as a sanctioned country under the Office of Foreign Assets Control (OFAC), or if OFAC opines that the project violates the current sanctions, APSEZ plans to abandon the project and write down the investments," the company said in a filing to exchanges, reports Moneycontrol.

APSEZ, in May 2019 announced its intent to set up a container terminal at Yangon, Myanmar and entered through a lease agreement with the then democratically elected government.

The private multi-port operator is constructing a port at the cost of $290 million on land leased by the neighbouring country’s military-backed Myanmar Economic Corporation (MEC). In fact, the company owes millions of dollars of rent to the MEC.

The industrialist Gautam Adani-owned group had assured last month that it would hold consultations with authorities and stakeholders on this project. Around 700 people have passed away in the brutal crackdown ensued by the Myanmar military over the course of the last couple of months.

International powers such as the United States (US) and Britain have also issued sanctions to the Myanmar Economic Holdings Public Company Ltd (MEHL), which is one of the conglomerates controlled by the Burmese military.