Sberbank launches direct settlements with Myanmar, intends to make payments for energy resources, number of other goods

MOSCOW. Oct 7 (Interfax) - Sberbank has completed preparations for launching a mechanism of direct settlements with Myanmar, the bank said in a statement.

"This concerns the creation of a full-fledged infrastructure to support major state contracts and commodity flows," the bank said.

A key element of the scheme is Sberbank's Indian branch. The infrastructure opens access to making payments in Indian rupees and connects Myanmar companies not only with Russia, but also with the markets of India, Belarus and the countries of the Commonwealth of Independent States (CIS).

"The focus of the new initiative is the transition from disparate operations to comprehensive servicing of flows between the countries. It is planned that settlements for supplying energy resources and air navigation services will pass through Sberbank's infrastructure. Settlements for commodity exports and imports of agricultural products, fertilizers and mechanical engineering will also pass through it," the bank said.

Sberbank and the Myanmar Finance and Revenue Ministry have concluded a memorandum of understanding, Russian Economic Development Minister Maxim Reshetnikov said on Monday during a meeting of the Russian-Myanmar commission on trade and economic cooperation. The agreements reached are "an important signal to companies about the emergence of a reliable settlement channel, which is critically important for expanding trade ties and implementing investment projects of the two countries," Reshetnikov said.