Russia and Mongolia, to strengthen trade and economic ties
Bilateral trade in 2021 increased by 24%
Russia and Mongolia have adopted a declaration which sets clear goals in terms of strengthening cooperation between the two countries, Russian President Vladimir Putin announced after talks with his Mongolian counterpart Ukhnaagiin Khurelsukh late last month.
“President Khurelsukh and I adopted a joint political declaration as a follow-up to the Treaty on Friendly Relations and Comprehensive Strategic Partnership signed in 2019,” Putin said. He said the document “sets clear objectives in terms of deepening bilateral relations in various areas of cooperation.”
Putin added that Russia and Mongolia have prepared and planned to sign a number of intergovernmental and interagency documents covering many areas of cooperation, including economy and trade.
According to Putin, the fact that the Mongolian president chose Russia as the destination for his first foreign visit (Khurelsukh was elected in June 2021) clearly shows that Mongolia attaches great importance to promoting good neighborly relations with Russia. “Certainly, we are interested in close cooperation with our Mongolian friends,” the Russian leader said, adding that 2021 marks the 100th anniversary of diplomatic relations between the two countries. Putin stressed that Russia was the first country to recognize Mongolia’s independence, and since then bilateral interaction has progressed on the basis of mutual respect and willingness to take into account each other’s interests.
Speaking of economic cooperation, Putin pointed out that Russia is one of Mongolia’s main trading partners. According to him, despite the difficulties created by the coronavirus pandemic, trade between the two countries increased by 24% in the first nine months of the year. Putin also highlighted the effective work of the Intergovernmental Commission on Trade, Economy, Research and Technical Cooperation. The Russian president noted that at a meeting in November, the commission presented specific new plans for cooperation in the fields of infrastructure, mining, energy, agriculture and digital technologies.
“Ulaanbaatar Railway is a successful flagship joint business project. Over the past ten years, its annual freight turnover has doubled from 15 to 30 million tons,” he said. Putin also said that in previous years a lot had been done to modernize the railways and ensure the financial stability of the company. “We hope these measures will make rail freight traffic through Mongolia even more attractive and profitable.” Putin said. The Trans-Mongolian Railway serves both Russian and Mongolian trade, but also provides a route to China.
In 2021, Russia’s top exports to Mongolia were refined petroleum, crude iron bars, rail freight wagons, electricity, and insulated wire. Russia’s main imports from Mongolia were feldspar, knitted socks and hosiery, knitted sweaters, other engines, and freight cars. Bilateral trade currently stands at around US$1.8 billion.
Briefing Russia is written by Dezan Shira & Associates. The company has 28 offices across Eurasia, including China, Russia, India and ASEAN countries, assisting foreign investors in the Eurasian region. Please contact Maria Kotova at [email protected] for Russian investment advice or assistance with market information, legal, tax and compliance issues throughout Asia.